Investment Banking Company Benchmark Issues “Buy” Rating for Bitcoin Miner Hut 8, Sets $12 Share Price Target
Investment banking company Benchmark has issued a “buy” rating for Bitcoin miner Hut 8, setting a $12 share price target. Hut 8 is looking to expand its self-mining operations and diversify its revenue streams to remain competitive in the post-halving market. Despite having a lower self-mining hash rate than its competitors, Benchmark expects Hut 8 to close the gap over time.
The report by Benchmark’s analyst Palmer cited Hut 8’s multiple revenue streams, including self-mining, cloud computing, high-performance computing, and artificial intelligence services, as justification for his price target. He also highlighted that Hut 8’s enterprise value-to-revenue multiple is slightly below the average of its publicly traded Bitcoin mining peers.
Hut 8 recently announced a leadership shakeup, with Asher Genoot replacing former CEO Jamie Leverton. The company aims to increase cash flow, reduce mining costs, and boost Bitcoin production by relocating efficient miners to its Medicine Hat site while retiring old and inefficient ones.
Investors are showing interest in self-mining as they anticipate a significant increase in the price of Bitcoin after the latest halving. Hut 8, with its diverse business operations, may have an advantage following the halving. The company’s merger with US Bitcoin Corp. has created a combined entity with a substantial hash rate and energy capacity under management.
Hut 8 CEO Asher Genoot is focused on reducing costs and inefficiencies across all business lines. The company’s holdings of Bitcoin provide a solid liquidity cushion and the ability to capture upside during price rallies. While Hut 8’s mining fleet may need efficiency upgrades, its diversified model and relative strength in Bitcoin’s price should support its operating performance.
In conclusion, Hut 8 has received a buy rating from Benchmark, despite facing challenges and leadership changes. Investors are optimistic about the company’s potential in the post-halving market. It will be interesting to see how Hut 8 navigates the evolving landscape of Bitcoin mining and continues to innovate in the industry.
