Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 21 Mar, 25 | HUT | Speculative Buy | USD 12.92 | USD 13.6 | USD 14.1 | 2 days | 9.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Hut 8 Corp. operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing " Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.
Increased Bitcoin Reserves: The company expanded its strategic Bitcoin holdings to 10,171 BTC, valued at $949.5 million as of December 31, 2024, reinforcing its financial strength and market positioning
Strong Profitability Growth: Hut 8’s net income surged to $331.4 million in 2024, a significant increase from $21.9 million in 2023, reflecting successful operational efficiencies and digital asset gains
Decline in Bitcoin Production: The company mined 1,466 BTC in 2024, a 47% decrease from 2,789 BTC in 2023, which may indicate operational challenges or reduced efficiency in mining output
Higher Cost to Mine Bitcoin: The cost to mine a Bitcoin increased significantly from $16,570 per BTC in 2023 to $28,161 per BTC in 2024, potentially impacting profitability if Bitcoin prices decline
Hut 8 faces key investment risks, including Bitcoin price volatility, rising energy and operational costs, potential regulatory changes affecting cryptocurrency mining, and execution risks in scaling its AI and digital infrastructure initiatives
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 12.92 | 11.9 | 13.6 | 14.1 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong Financial Performance in 2024
Hut 8 Corp. (Nasdaq | TSX: HUT) reported robust financial results for the full year 2024, with revenue reaching $162.4 million, a significant increase from $96.0 million in the prior year. The company achieved a net income of $331.4 million, driven by a gain on digital assets totaling $509.3 million. Adjusted EBITDA saw a substantial rise to $555.7 million from $85.7 million in 2023. These results reflect Hut 8’s strategic initiatives to optimize operations and capitalize on opportunities within the energy infrastructure and digital asset sectors.
Operational Enhancements and Strategic Developments
Throughout 2024, Hut 8 executed a comprehensive restructuring program that resulted in a 30% reduction in energy costs per megawatt-hour (MWh) and an eight-percentage-point increase in gross margin per Bitcoin mined. Additionally, the company appointed Asher Genoot as Chief Executive Officer in February and expanded its leadership team with key hires, including Sean Glennan as Chief Financial Officer and Victor Semah as Chief Legal Officer. These changes were aimed at strengthening Hut 8’s operational efficiency and positioning the company for disciplined growth in 2025.
Expansion of Energy and Digital Infrastructure
The company made notable advancements in its energy and digital infrastructure segments, securing a 205 MW behind-the-meter site in Texas, named Vega, which is expected to be operational by the second quarter of 2025. Hut 8 also advanced three large-scale AI data center projects, with the potential to add over 430 MW of capacity. Additionally, it completed the development of Salt Creek, a 63 MW Bitcoin mining facility, in just over three months at an all-in cost of approximately $240,000 per MW, showcasing its ability to deploy infrastructure rapidly and cost-effectively.
Growth in Compute and Bitcoin Mining Operations
Hut 8 continued expanding its computing capabilities, generating $80.7 million in revenue from Bitcoin mining, GPU-as-a-Service, and data center cloud operations. The company partnered with BITMAIN to launch a next-generation ASIC miner, the U3S21EXPH, integrating direct-to-chip liquid cooling for higher efficiency. Furthermore, Hut 8 secured a colocation contract with BITMAIN, expected to generate approximately $125 million in annualized revenue. This agreement includes an option for Hut 8 to purchase a full 15 exahash-per-second (EH/s) deployment, potentially increasing its self-mining hashrate to 25.1 EH/s.
Strengthened Financial Position and Capital Strategy
To enhance its financial flexibility, Hut 8 secured a $150 million strategic investment from Coatue to support AI infrastructure expansion. The company also converted a $37.9 million loan from Anchorage Digital into equity at a 51% premium to the 20-day volume-weighted average price. Additionally, Hut 8 launched a $500 million at-the-market (ATM) program and a $250 million stock repurchase program, demonstrating confidence in its long-term strategy. The company expanded its Bitcoin reserve to 10,171 BTC, with a market value of $949.5 million as of year-end 2024.
Future Outlook and Strategic Vision
Looking ahead, Hut 8 aims to leverage its energy infrastructure platform to drive growth in high-performance computing and AI-driven applications. The company’s realigned operating structure focuses on three core segments—Power, Digital Infrastructure, and Compute-enabling efficient capital allocation and risk mitigation. With a 12.3-gigawatt development pipeline and increasing demand for energy-intensive applications, Hut 8 believes its platform model will provide a sustainable competitive advantage, positioning it to fuel the next generation of transformative technologies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on Hut 8 Corp (NASDAQ: HUT) at the closing market price of USD 12.92, as on March 20, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HUT Hut 8 Corp. Common Stock |
0.59 5.00% | 12.38 | - | 59.52 | 13.00 | 3.58 | 37.80 | -36.6842 |
| MS Morgan Stanley |
2.58 2.34% | 112.97 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| SCHW Charles Schwab Corp |
1.88 2.45% | 78.45 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
14.56 2.80% | 534.55 | 18.44 | 10.60 | 2.83 | 1.16 | ||
| CIIHY CITIC Securities Co Ltd ADR |
- -% | 20.98 | 15.86 | 7.89 | 0.98 | 1.07 | 10.27 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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