Analysts at H.C. Wainwright & Co. upgraded Hut 8 Mining's stock rating from 'Sell' to 'Buy' following the release of its second-quarter financial results.
Hut 8's Positive Developments
The upgrade is driven by the company's success in reducing electricity costs to $0.032/kWh and the energization of a new 63 MW facility in Texas. Hut 8's strong liquidity position, totaling $722 million, including 9,102 Bitcoin (BTC), positions it well to capitalize on market opportunities.
Stock Declines
Despite a 50% decline in Hut 8's stock price over the past month, analysts see the current valuation as an attractive entry point for investors, given the company's potential to nearly triple its operating hash rate by 2025.
Financial Results
Hut 8's Q2 2024 revenue declined 32% quarter-over-quarter to $35.2 million, with a GAAP EPS loss of $0.78 per share.
Analysts have a positive outlook on Hut 8's prospects despite recent stock volatility, citing its strong liquidity and strategic achievements.
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