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On Monday, BTIG initiated coverage on Hut 8 Mining Corp. (NASDAQ:HUT) with a Buy rating and a price target of $18.00. The company, currently valued at $1.26 billion, trades at an attractive P/E ratio of 3.29. According to InvestingPro data, analyst targets range from $19 to $35, suggesting significant upside potential from the current price of $12.16. Hut 8, a company involved in bitcoin mining and high-performance computing (HPC), is recognized for managing approximately 1GW of power in North America and possessing significant mining capacity.
BTIG analysts highlighted Hut 8’s current hash rate at about 9.3 EH from self-mining, which accounts for nearly 1% of the global hash rate. The company also has the option to expand its capacity by an additional 15 EH, potentially increasing its bitcoin mining capabilities to around 25 EH. This expansion potential comes as the company demonstrates strong financial performance, with revenue growth of 69.07% and EBITDA of $518.05M in the last twelve months. Despite its early stages in the HPC sector and lack of secured AI HPC customers, Hut 8 announced last month its intention to form American Bitcoin, separating its bitcoin mining business. Hut 8 is expected to retain approximately 80% ownership of American Bitcoin, with the Trump family and associates holding the remaining stake.
The analysts pointed out that Hut 8 has considerable work ahead in its HPC business, such as acquiring customers and generating revenue, before it can consider spinning off its bitcoin mining operations. Currently, Hut 8 operates as a power infrastructure firm with about 323MW of data centers active, which includes its 50% joint venture share. The company is also anticipating the launch of its Vega site in Texas, which will contribute an additional 205MW, within this quarter.
Furthermore, Hut 8 has roughly 2.8GW of power under exclusivity, which BTIG refers to as call options on infrastructure at various development stages. This includes approximately 430MW earmarked for HPC activities, with about 300MW in Louisiana that are greenfield projects. BTIG analysts concluded that Hut 8 possesses a substantial potential pipeline of infrastructure targeting HPC opportunities. Investors can access detailed analysis and 12 additional key insights about HUT through InvestingPro’s comprehensive research report, which includes in-depth coverage of the company’s growth prospects and financial health metrics. The company’s next earnings report is scheduled for May 8, 2025.
In other recent news, Hut 8 Mining Corp. has been the focus of several analyst updates and strategic developments. Benchmark analysts revised their price target for Hut 8 Mining to $33 from $41, maintaining a Buy rating. This adjustment follows Hut 8’s strategic move to contribute its bitcoin mining rigs to American Data Centers, securing an 80% interest in American Bitcoin. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating with a stable $30 price target, noting a decrease in Bitcoin mining production for February due to a fleet upgrade. The firm expects Hut 8’s hash rate to double upon completion of the upgrade.
Rosenblatt Securities initiated coverage with a Buy rating and a $23 price target, highlighting the merger with US Bitcoin as a key value driver. Rosenblatt anticipates growth in Hut 8’s multiple revenue streams, particularly in High-Performance Computing (HPC), starting in 2025. Additionally, Benchmark maintained a $41 target, emphasizing Hut 8’s achievements in expanding its bitcoin mining operations and AI data centers. H.C. Wainwright also upheld a Buy rating with a $30 target, focusing on Hut 8’s potential AI deal and the development of large-scale AI data centers, which could significantly boost revenue. These developments reflect ongoing confidence in Hut 8’s strategic direction and potential for future growth.
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