The broker reduced its price target to $14 from $17.50, while it maintained its buy rating.with US Bitcoin Corp. at the end of last year, broker Canaccord Genuity said in a research report on Thursday.
“New Hut 8 has ~7 exahashes per second 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 ,” analysts led by Joseph Vafi wrote. The broker lowered its price target on the stock to $14 from $17.50 while maintaining its buy rating. Hut 8 closed at $9.69 on Thursday.
After the business combination was completed, Hut 8 launched a restructuring program to lower costs and increase cash flow, Canaccord noted. “To that end, the company has deployed USBTC’s proprietary technology across all the facilities,” the authors wrote. “By using an energy management software, the company now only mines BTC when it’s profitable.”event expected later this month, management is taking a more considered approach to buying new mining machines, which indicates it is “prioritizing efficiency over scale at least in the near term," the report said.