Hut 8’s Bright Future After Merger: $12 Price Target by Benchmark

Hut 8 Corporation: A Promising Future

After the merger with US Bitcoin Corporation (USBTC) in November, Hut 8 (HUT) has positioned itself as a strong entity with diverse revenue streams, as highlighted in a recent research report by Benchmark.

Buy Rating and Price Target

Benchmark has assigned Hut 8 a buy rating with a price target of $12. Currently, Hut 8’s shares are trading 14% higher at $9.22.

Diversified Business Model

Hut 8’s business model includes self-mining, managed services, hosting, high-performance computing, and artificial intelligence, providing multiple revenue streams.

Market Value of Bitcoin Reserves

Hut 8 holds 9,102 bitcoins valued at approximately $592 million, which is 82% of its market capitalization, positioning it as the second-ranked listed miner in terms of bitcoin holdings.

Formation of Hut 8 Corporation

In November 2023, Hut 8 Mining and US Bitcoin merged to form Hut 8 Corporation, headquartered in the United States. The new entity began trading under the $HUT ticker on the Nasdaq and Toronto Stock Exchanges starting December 4.

Power Capacity and Infrastructure

As of March 31, Hut 8 Corporation manages around 884 MW of power capacity across 11 sites, with a total hash rate of 25.5 EH/s. The company operates in New York, Texas, and Alberta provinces in Canada, along with hosting, managed services, and high-performance computing businesses.

Initiatives for Cost Reduction

Since the merger, Hut 8’s management has focused on reducing mining costs, lowering energy expenses, and improving cash flow to enhance operational efficiency.