Key Points
- Bitcoin mining firm Hut 8 has been given a 'buy' rating and a $12 price target by Benchmark.
- Hut 8's diversified business model and substantial bitcoin holdings were key factors in Benchmark's evaluation.
Benchmark has begun coverage of bitcoin miner Hut 8, assigning the firm a "buy" rating and a price target of $12.
In its assessment, Benchmark considered Hut 8's "diversified business model" after the company merged with U.S. Bitcoin Corporation. This merger has resulted in several new revenue streams from self-mining, managed services, hosting, high-performance computing, and artificial intelligence.
Hut 8's Bitcoin Holdings
The investment banking firm also highlighted the 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 in reserve. The company's bitcoin holdings offer it a substantial liquidity cushion and the potential to benefit from bitcoin price increases. These holdings are estimated to be worth around $592 million, roughly 82% of its market capitalization.
Merging with U.S. Bitcoin Corporation
In November 2023, Hut 8 and U.S. Bitcoin Corporation announced their official merger. The newly formed company, Hut 8 Corporation, is based in the U.S. As of March 31, the company managed about 884 MW of power capacity across 11 sites and had a total hash rate of 25.5 EH/s. It also has a 250 MW hosting business, a managed services operation, and runs a high-performance computing business with five data centers across Canada.
Hut 8 Corporation's shares are listed on Nasdaq. The closing price on Friday was $8.05, marking a 2.16% increase for the day.
