Hut 8s Analyst Day presentation falls short of impressing analyst
Public Bitcoin mining company Hut 8 has recently revealed its strategies to keep pace with other market participants at its first analyst day in nearly nine months.
After merging with U.S. Bitcoin Corp. (USBTC) last November, Hut 8 is now putting its focus on capital efficiency, cost control, and profitable growth. However, H.C. Wainwright’s crypto analyst Mike Colonnese has reported that the plan did not inspire a bullish stance on the company’s stock.
During the analyst day in Miami, Hut 8 CEO and USBTC co-founder Ashen Genoot shared a vision to optimize power needs for maximum shareholder value, whether through Bitcoin (BTC) mining or providing a data center for dense computing operations like Artificial Intelligence (AI).
The Bitcoin halving has greatly affected miner revenues with block rewards being slashed by 50%, leading to miner capitulation as they sold off BTC holdings to cover expenses. Hut 8, being one of the oldest miners, has experienced a more significant revenue drop compared to its competitors, losing market share to other public miners and showing low utilization rates due to an inefficient mining fleet.
Under-clocking miners has also resulted in decreased BTC production, putting the company behind others in various aspects. As a result, analysts have maintained a sell rating, stating that there was “nothing incremental or thesis-changing from last week’s Analyst Day.”
Despite being in a transitionary period, Hut 8 has secured deals for long-term, low-cost power through a 1.1-gigawatt pipeline, and successfully launched a new facility in Salt Lake, Texas within three months. The company also raised $150 million from Coatue to build next-gen AI infrastructure, giving Hut 8 the resources to address issues and strengthen its market presence.
