Bitcoin Miner Hut 8’s Post-Merger Prospects Look Good: Benchmark

In a research report published on Monday, benchmark analysts described Hut 8’s newly merged form (Hut 8 and US Bitcoin Corporation) as having a varied business strategy with numerous sources of income.

The benchmark team started following the bitcoin miner with an optimistic outlook and a suggested price of $12, resulting in a buy rating for Hut 8. At the time of publishing this article, Hut 8’s stock was up by 5.2%, trading at $8.47.

The sources of income encompass self-mining, management services, hosting, and advanced computing for high-performance tasks and artificial intelligence.

According to analyst Mark Palmer, the company’s hut is currently selling at a lower price compared to its competitors in Bitcoin mining. However, he anticipates this discount to decrease as the firm carries out its plans for expanding its self-mining operations.

According to the report, as of March 31, Hut 8 held the second largest amount of Bitcoin among publicly traded mining companies, with a total of 9,102 Bitcoins in storage.

The company’s large stash of Bitcoin gives it a substantial financial buffer and the opportunity to profit from price increases, according to the report. Their crypto assets are estimated to be worth approximately $592 million, representing around 82% of their total market value.

After the merger was completed, the management has been working on strategies to lower the company’s expenses related to bitcoin mining and the cost of energy, as well as enhancing its cash inflow, according to Palmer.