Hut 8 Corp (NASDAQ:HUT) Shares Surge Following Bitcoin Halving Event

Hut 8 Corp (NASDAQ:HUT) Shares Surge as Bitcoin Halving Event Impacts Miners

Investors are closely watching the performance of Hut 8 Corp (NASDAQ:HUT) shares as the Bitcoin halving event continues to impact miners in the cryptocurrency space. Following the merger of “old HUT” with US Bitcoin Corporation (USBTC) in November 2023, the new entity has seen a surge in prospects due to diversified revenue streams and initiatives to increase profitability, according to Benchmark.

Analyst Mark Palmer has initiated coverage of Hut 8 with a Buy rating and a price target of $12. Palmer believes that the stock’s current discount to its Bitcoin mining peers could shrink as the company executes on its self-mining expansion plans. The management team is focusing on expanding energy capacity, with over 1,100MW of energy development capacity under exclusivity that could enable a hash rate capacity of around 63 EH/s using current generation mining rigs.

In a strategic move, management has halted purchasing new mining rigs in anticipation of more efficient 3 nanometer rigs becoming available in the coming months, followed by even more efficient 2 nanometer rigs. This focus on efficiency is aimed at lowering the company’s cost of mining Bitcoin and its realized cost of energy, ultimately increasing cash flows.

Shares of Hut 8 surged by 9.56% to $8.83 at the time of publication on Monday, reflecting investor optimism in the company’s growth prospects. As the Bitcoin halving event continues to impact miners, all eyes are on Hut 8 as it navigates the evolving cryptocurrency landscape.

For more news and updates on the cryptocurrency market, stay tuned to Benzinga.com.