Hut 8’s Post-Merger Future Appears Promising with $12 Price Target: Benchmark
According to Benchmark’s coverage of Hut 8, a prominent Bitcoin miner with an optimistic “buy” rating and a price target of $12, Hut 8 has a promising future ahead of it.
Following the merger with US Bitcoin Corporation (USBTC) last November, Hut 8 (HUT) has emerged as a robust entity with a diversified business model, boasting multiple revenue streams, as noted in a research report by Benchmark released on Monday.
According to the report, Hut 8 was assigned a buy rating and a $12 price target. At the time of publication, Hut 8’s shares were trading 14% higher at $9.22.
Benchmark’s evaluation takes into account Hut 8’s diversified business model. Hut 8 taps into multiple revenue streams, including self-mining, managed services, hosting, high-performance computing, and artificial intelligence.
“Hut trades at a discount to its bitcoin mining peers that we expect to shrink as the company executes on its self-mining expansion plans,” analyst Mark Palmer stated.
Additionally, the research note underlined the market value of Hut 8’s bitcoin reserves, which provide the company with a considerable liquidity cushion and the potential to capitalize on upticks in bitcoin prices. The analysis added that Hut 8 was the second-ranked listed miner regarding bitcoin holdings, with 9,102 bitcoins kept in reserve as of March 31. Hut 8’s bitcoin holdings are valued at approximately $592 million, equivalent to 82% of its market capitalization.
On February 7, Hut 8 unveiled plans for a definitive business combination agreement between the boards of directors of Hut 8 Mining and US Bitcoin (USBTC).
Our new “Fundamentals” series documents the foundational elements of Hut 8’s platform. First in the series is Reactor, our proprietary energy
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