Following the completion of its merger with US Bitcoin Corp. (USBTC) at the end of last year, Bitcoin (BTC) miner Hut 8 (HUT) is a considerably more diversified company with different revenue sources, broker Canaccord Genuity said in a research report on Thursday.
According to analysts lead by Joseph Vafi, "New Hut 8 has ~7 exahashes per second (EH/s) of self-mining capacity and revenue from self-mining accounts for ~68% of revenue today with the remaining coming from managed services, hosting, and high-performance computing (HPC)."
The analyst kept a buy recommendation on the company but dropped its price objective to $14 from $17.50. On Thursday, Hut 8 closed at $9.69.
According to Canaccord, Hut 8 started a restructuring program to reduce expenses and boost cash flow after the company combination was finished.
The authors stated, "To that end, the company has deployed USBTC's proprietary technology across all the facilities." "The business now only mines Bitcoin when it's profitable thanks to an energy management software."
The management is purchasing new mining equipment with greater thought, indicating that it is "prioritizing efficiency over scale at least in the near term," according to the article, in light of the anticipated bitcoin halving event later this month.
The managed services company's size, according to Canaccord, is encouraging. The company also mentioned that the collaboration with Iconic Digital will bring in more than $20 million in revenue annually.
The paper also stated that "finally, a HODL of over 9,000 BTC also provides significant flexibility to the company."
Jamie Leverton, the previous CEO of Hut 8, departed the company in February, a few weeks after the company was the target of a short-seller report. Asher Genoot, the president of the business and co-founder of U.S. Following the merger, Hut 8 appointed Bitcoin Corp. as president and director in November.
April 2024, Cryptoniteuae