Benchmark has initiated coverage of bitcoin miner Hut 8, issuing a “buy” rating along with a price target of $12.
In their assessment, Benchmark took into account Hut 8’s “diversified business model,” particularly after its merger with U.S. Bitcoin Corporation. This strategic move has led to the creation of multiple new revenue streams for Hut 8, including self-mining, managed services, hosting, high-performance computing, and artificial intelligence.
Benchmark also highlighted the significant market value of Hut 8’s bitcoin holdings. As of March 31, Hut 8 ranked second among listed miners in terms of bitcoin holdings, with 9,102 bitcoins held in reserve. The analysis pointed out that Hut 8’s current trading discount relative to its peers in the bitcoin mining sector is expected to narrow as the company progresses with its self-mining expansion plans.
Additionally, Hut 8’s substantial bitcoin holdings provide it with a substantial liquidity buffer and the potential to capitalize on upward movements in bitcoin prices. According to the analysis, the company’s bitcoin holdings are valued at approximately $592 million, equivalent to about 82% of its market capitalization.
Following the merger with U.S. Bitcoin Corporation in November 2023, Hut 8 Corporation was formed, headquartered in the U.S. As of March 31, Hut 8 Corporation managed around 884 MW of power capacity across 11 sites, with a total hash rate of 25.5 EH/s and a 250 MW hosting business, along with managed services operations. Hut 8 also operates a high-performance computing business with five data centers located across Canada.
Hut 8 Corporation’s shares are listed on Nasdaq, and as of Friday’s close of trading, the price stood at $8.05, representing a 2.16% increase for the day.
