Hut 8 price target lowered to $33 from $41 at Benchmark

Benchmark analyst Mark Palmer lowered the firm’s price target on Hut 8 (HUT) to $33 from $41 and keeps a Buy rating on the shares after Hut 8 hosted a conference call to discuss the strategic rationale for having contributed its bitcoin mining rigs to American Data Centers in exchange for an 80% interest in the firm, which was subsequently relaunched as American Bitcoin. Hut 8 believes the deal should enable it to generate recurring, fiat-based revenue while reducing its overall cost of capital, with these factors contributing to a higher valuation multiple for its stock, the analyst tells investors.