Hut 8 Maps ‘Path to Monetization’ of Energy Assets as Bitcoin Mining Carve-Out Nears: Benchmark
Hut 8 (HUT) is preparing to transfer the majority of its bitcoin BTC$111,187.10 mining activities to American Bitcoin (ABTC) within the coming week, a strategic shift Benchmark analyst Mark Palmer believes could positively impact the firm’s stock valuation.
Recently, Hut 8 disclosed initiatives to create 1.53 gigawatts (GW) of additional capacity across four U.S. locations in Louisiana, Texas, and Illinois, boosting its managed power capacity to over 2.55 GW—more than double its previous footprint.
Palmer increased Hut 8’s price target to $36 from $33, reaffirming his buy stance on the shares. This adjustment implies a potential gain of nearly 40% compared to the prior day’s closing price just under $26.
The analyst highlighted the importance of this update, emphasizing Hut 8’s concrete steps toward leveraging its energy pipeline. The company has already secured land, power contracts, and infrastructure while engaging in discussions with prospective clients.
By shifting mining operations to ABTC, Hut 8 intends to focus on energy infrastructure specialization, enabling access to lower-cost project funding by distancing itself from bitcoin-related revenue fluctuations, according to Palmer.
The report indicated Hut 8 holds up to $2.4 billion in available funds to fuel growth, comprising $1.2 billion in bitcoin holdings, $330 million in credit options, and a $1 billion equity initiative.
Palmer described Hut 8 as a versatile investment opportunity aligned with both bitcoin’s trajectory and the expanding artificial intelligence (AI) and high-performance computing (HPC) sectors.
Read more: Bitcoin Miner Hut 8 Surges 15%, Leading Industry Rally After Securing 5-Year Power Agreement
Source: cryptonews.net
