World Crypto Global
- Written by: Tareq Sikder
- Mon, 22 Apr 2024
- Israel
Hut 8, the result of a merger with US Bitcoin Corporation last November, has garnered attention due to its diversified businessmodel, according to a research report by Benchmark released today (Monday).A Close Look at Revenue Streams and Crypto ReservesBenchmark analysts highlighted the company's various revenuestreams, including self-mining, managed services, hosting, and involvement inhigh-performance computing and artificial intelligence sectors. Initiating coverage on Hut 8, Benchmark issued a buy ratingwith a $12 price target. At the time of publication, Hut 8's shares weretrading 5.2% higher at $8.47.The report also noted Hut 8's bitcoin holdings,ranking second among listed miners as of March 31, with 9,102 bitcoins held inreserve. This substantial bitcoin reserve not only provides the company with asubstantial liquidity cushion but also positions it to benefit from pricerallies in the cryptocurrency market.Broker Benchmark initiated coverage of $BTC miner @Hut8Corp with a buy rating and a $12 price target. It said the company was more diversified following its merger with US Bitcoin Corporation. @willcanny99 reports.https://t.co/fsRstb2FXP CoinDesk (@CoinDesk) April 22, 2024Hut trades at a discount to its bitcoin mining peers thatwe expect to shrink as the company executes on its self-mining expansionplans, analyst Mark Palmer wrote. Management has focused on actions aimed atreducing the companys cost of mining bitcoin and its realized cost of energyand increasing its cash flow.Hut 8's crypto holdings are valued at approximately $592million, which accounts for about 82% of its market capitalization.Shutting Down Alberta Facility for Cost SavingsHut8 recently closed its Bitcoin mining facility in Alberta, Canada, as partof its efforts to optimize operations and improve financial performance, asreported by Finance Magnates.The company has planned to relocate efficient miners to its Medicine Hat sitewhile retiring old and inefficient ones. This move is expected to increase thecompany's cash flow, reduce mining costs, and boost Bitcoin production byapproximately 11% per EH.This article was written by Tareq Sikder at www.financemagnates.com.
