Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Wednesday, Cantor Fitzgerald analyst Brett Knoblauch reiterated an Overweight rating on Hut 8 Mining Corp. (NASDAQ: HUT) with a steady price target of $35.00. The company, which has seen an impressive 213% return over the past year and currently maintains a market capitalization of $2.03 billion, reported a decrease in Bitcoin mining production for January, mining 65 Bitcoin compared to 89 in December. According to InvestingPro data, HUT stock typically trades with high volatility, making it crucial for investors to stay informed with real-time metrics and analysis. The decline was attributed to a reduction in Hut 8’s self-mining deployed hash rate, which decreased month-on-month from 5.5 EH/s to 5.0 EH/s.
The analyst pointed to the ongoing infrastructure upgrades at Hut 8 as the reason for the hash rate reduction, which are part of preparation for a significant fleet upgrade. Hut 8 had previously announced the acquisition of 31,145 S21+ Bitmain mining rigs in late 2024, with deliveries expected to start at the beginning of 2025. These new rigs are anticipated to enhance the company’s mining efficiency significantly.
Hut 8 also provided updates on its Vega, TX site, which is anticipated to be energized in the second quarter of 2025. The site will feature next-generation Bitmain mining rigs and marks Hut 8’s first foray into direct-to-chip liquid cooling infrastructure. Additionally, the company maintained its managed services capacity at 280 MW and reported a slight decrease in miners under management, with the hash rate remaining stable.
Despite the drop in Bitcoin mined and the hash rate in January, Knoblauch remains positive about Hut 8’s prospects. The analyst believes the company’s stock is attractive due to its Bitcoin mining potential, the Bitcoin holdings on its balance sheet, and its developments in AI and high-performance computing (HPC). Financial metrics support this outlook, with InvestingPro data showing strong revenue growth of 129.66% and a reasonable P/E ratio of 10.48. The stock is currently trading near its Fair Value according to InvestingPro’s comprehensive analysis, which includes over 30 key financial metrics and exclusive ProTips available to subscribers. Hut 8’s AI/HPC project in West Feliciana Parish, Louisiana, which involves developing a 300 MW data center for an unnamed hyperscaler, was not mentioned by the management but is considered a positive factor in the analyst’s outlook. Analyst consensus remains bullish, with price targets ranging from $30 to $41. For deeper insights into HUT’s financial health and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which provides comprehensive analysis of this and 1,400+ other top US stocks.
In other recent news, Hut 8 Mining Corp. has been a focal point in the investment world. The company recently advanced its project to construct a data center complex in Louisiana, a development that received unanimous approval from the West Feliciana Parish Planning & Zoning Commission. Analysts from Benchmark have maintained a Buy rating on Hut 8, while Cantor Fitzgerald initiated coverage with an Overweight rating and a price target of $35.00. Piper Sandler also initiated coverage, giving Hut 8 an Overweight rating and a price target of $33.00.
In addition, Hut 8 announced a series of capital market actions, including an at-the-market equity program potentially offering shares worth up to $500 million and a $250 million stock repurchase program. The company’s partnership with Bitmain, involving the hosting of Bitmain’s new direct-to-chip liquid cooling machines at its Texas facility, is expected to generate significant revenue starting in 2025.
Finally, shares of companies specializing in Artificial Intelligence (AI) and High-Performance Computing (HPC), including Hut 8, experienced a decline after China-based AI firm DeepSeek matched US Large Language Model performance levels. However, Brett Kornblauch at Cantor suggested that the sell-off might be premature, indicating that the full impact of DeepSeek’s advancements on the power demand associated with AI technologies is yet to be assessed.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.