Hut 8’s Strategic Transformation and Growth Potential Justifies Buy Rating

Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on Hut 8 (HUT – Research Report). The associated price target remains the same with $32.00.

Joseph Vafi has given his Buy rating due to a combination of factors that highlight Hut 8’s strategic positioning and growth potential. The company is undergoing a transformation under the leadership of CEO Asher Genoot, focusing on optimizing its operations and aligning its strategies with emerging opportunities in AI hosting and power infrastructure. This strategic shift includes the creation of American Bitcoin, a majority-owned subsidiary, which will consolidate Hut 8’s BTC mining assets and potentially become a publicly traded entity. This move allows Hut 8 to concentrate on expanding its power portfolio while American Bitcoin pursues a broader bitcoin acquisition strategy.
Furthermore, Hut 8’s large power development pipeline, including the River Bend project, positions the company to capitalize on data center demand in key markets between Dallas and Atlanta. The progress at River Bend signifies Hut 8’s commitment to entering larger-scale HPC data center hosting. These strategic initiatives, coupled with the potential involvement of notable figures like Eric and Donald Trump Jr in American Bitcoin, suggest a promising future for Hut 8, justifying the Buy rating.

In another report released on May 9, Needham also maintained a Buy rating on the stock with a $21.00 price target.