Last Updated: 09 Nov 2024
Executive Summary
Hut 8 Corp. (HUT) is a leading cryptocurrency mining company with a market capitalization of $1.83 billion. The company has been profitable in recent quarters, with an EBITDA of $254.5 million in the last twelve months. However, HUT is currently trading at a forward PE ratio of 48.78, which is significantly higher than the industry average. The company's high beta of 3.453 also indicates that it is more volatile than the broader market.
Company Overview
Hut 8 Corp. is a blockchain infrastructure provider that offers a range of services, including cryptocurrency mining, hosting, and staking. The company was founded in 2018 and is headquartered in Miami, Florida. Hut 8 operates a fleet of over 10,000 Bitcoin mining rigs and has a hashrate of over 3.0 EH/s.
Fundamental Analysis
Hut 8 Corp.'s financial performance has been mixed in recent years. The company reported a net loss of $26.4 million in 2022, but it has been profitable in the last two quarters. Revenue has grown steadily in recent quarters, but the company's profit margin is still negative.
Technical Analysis
Hut 8 Corp.'s stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also above 50, indicating that the stock is overbought.
Short Term Outlook
Hut 8 Corp.'s stock price is likely to continue to be volatile in the short term. The company's high beta indicates that it is more likely to move in the same direction as the broader market. The stock's RSI is also above 50, indicating that it is overbought.
Long Term Outlook
Hut 8 Corp.'s long-term outlook is positive. The company is a leader in the cryptocurrency mining industry and is well-positioned to benefit from the growing adoption of digital assets. The company's hashrate is also expected to increase in the coming years, which will help to improve its profitability.
Analyst Recommendations
The majority of analysts have a "hold" rating on Hut 8 Corp. stock. The average analyst price target is $20.93, which is slightly above the current stock price.
