Benchmark has begun covering Hut 8, a Bitcoin miner with a “buy” rating and a price target of $12.
Benchmark took into account the company’s “diversified business model” once its merger with U.S. Bitcoin Corporation was completed while evaluating it. This includes numerous new revenue sources from artificial intelligence, high-performance computers, managed services, hosting, and self-mining.
Additionally, the investment banking business mentioned the market value of the company’s bitcoin holdings. The benchmark analysis added that Hut 8 was the second-ranked listed miner in terms of bitcoin holdings with 9,102 bitcoins kept in reserve as of March 31.
“Hut 8 trades at a discount to its bitcoin mining peers that we expect to shrink as the company executes on its self-mining expansion plans,” the Benchmark analysis continued.
According to the analysis, the estimated worth of the company’s bitcoin holdings is $592 million, or around 82% of its market capitalization.
In November 2023, Hut 8 and the U.S. Bitcoin Corporation declared their official partnership. Officially, the new American-based business is known as Hut 8 Corporation.
On March 31, the corporation boasted a total hash rate of 25.5 EH/s, a 250 MW hosting business, a managed services operation, and about 884 MW of power capacity under administration across 11 facilities. In addition, HUT runs a high-performance computing company in Canada that has five data centers.
The Nasdaq-listed shares of Hut 8 Corporation closed Friday’s trading at $8.05, up 2.16% for the day.
Also Read: Hut 8 Slashes Costs by 30% at Salt Creek Facility Ahead of Halving
