Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Jun, 25 | HUT | Speculative Buy | USD 15.61 | USD 16.45 | USD 17.4 | 2 days | Closed |
10.83%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Hut 8 Corp. operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing " Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.
Capital Raise Success: Raised $275.5 million through the ATM program at a strong average share price of $28.23, providing capital for growth
Strategic Bitcoin Reserve Growth: Bitcoin holdings increased to 10,264 BTC (from 9,102 BTC), now worth $847.2 million, reinforcing long-term digital asset exposure
Cost to Mine a Bitcoin: Rose significantly from $20,419 to $58,757, severely impacting mining margins
Bitcoin Production Decline: Number of Bitcoin mined fell 76.7% year-over-year from 716 to 167
Hut 8's high cost structure, volatile Bitcoin revenue dependency, and capital-intensive expansion strategy pose material risks to profitability and sustainable cash flow
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 15.61 | 14.3 | 16.45 | 17.4 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance Overview: Hut 8 Corp. reported revenue of USD 21.8 million for the first quarter of 2025, significantly lower than the USD 51.7 million posted during the same period in 2024. The decline reflects ongoing strategic restructuring and reinvestment activities. The company recorded a net loss of USD 134.3 million in Q1 2025, a sharp contrast to net income of USD 250.7 million in Q1 2024, primarily due to a USD 112.4 million loss on digital assets, compared to a USD 274.6 million gain in the prior-year period. Adjusted EBITDA came in at negative USD 117.7 million, down from positive USD 297.0 million last year.
Power and Infrastructure Development: Hut 8 continues to make progress in building out its power generation and infrastructure capabilities. During the quarter, it generated USD 4.4 million in revenue from its Power and Managed Services segment. The company commenced initial sitework on 592 acres at the River Bend campus in Louisiana and expanded its development pipeline to approximately 10,800 MW, with 2,600 MW under exclusivity agreements as of March 31, 2025. These initiatives underscore the firm’s commitment to securing a scalable energy footprint to support its long-term operational goals.
Digital Infrastructure Expansion: The company’s Digital Infrastructure segment contributed USD 1.3 million in revenue during the quarter. Hut 8 made substantial progress at its Vega site, a 205 MW direct-to-chip liquid-cooled data center, which remains on schedule for energization in Q2 2025. More than 70% of the site’s budgeted capital expenditure had been incurred by quarter-end. Operational processes and site management protocols were also established, and testing of new cooling infrastructure was initiated at the Salt Creek facility to support Vega’s upcoming activation.
Compute Segment and Strategic Bitcoin Mining: The Compute segment was the primary revenue generator in Q1 2025, bringing in USD 16.1 million through Bitcoin mining, GPU-as-a-Service, and cloud data center operations. A major upgrade of Hut 8’s ASIC fleet was completed in April, boosting hashrate to 9.3 EH/s and improving average efficiency to 20 J/TH. The company launched a new majority-owned subsidiary, American Bitcoin, to consolidate and grow its mining operations. This entity was formed through a transaction with American Data Centers, Inc., a firm backed by Eric Trump and Donald Trump Jr., and is expected to enhance capital efficiency while retaining exposure to Bitcoin.
Capital Strategy and Strategic Reserves: Hut 8 significantly bolstered its financial positioning through capital raises and strategic asset retention. As of March 31, 2025, the company held 10,264 Bitcoin in reserve, valued at approximately USD 847.2 million. It also raised USD 275.5 million in net proceeds via its ATM equity program, selling 9.8 million shares at an average price of USD 28.23. These steps provide liquidity and financial flexibility to support expansion while maintaining exposure to long-term value creation through Bitcoin.
Key Operational Metrics and Cost Challenges: Despite the company’s aggressive expansion, operational costs surged. The cost to mine a Bitcoin nearly tripled year-over-year to USD 58,757 in Q1 2025 from USD 20,419 in Q1 2024. Energy costs rose to USD 51.71 per MWh, up from USD 40.06. The number of Bitcoins mined dropped significantly to 167 from 716 in the prior-year period, indicating operational inefficiencies and capacity adjustments. Nevertheless, revenue per Bitcoin increased to USD 92,224, up from USD 51,769, largely driven by market dynamics and improved capital allocation strategies.
Technical Commentary:
HUT's stock price is currently hovering near important support levels, indicating a possible upward move in the near future. The 14-period RSI is above the mid point, strengthening the optimistic outlook. Moreover, the stock is trading above its 50-day Simple Moving Average, which further reinforces a bullish bias and is likely to act as a support level in the short term. Overall, the technical indicators suggest a favorable setup for further gains.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Hut 8 Corp. (NASDAQ: HUT) at its current market price of USD 15.61 as of June 3, 2025 (6:45 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HUT Hut 8 Corp. Common Stock |
0.82 3.89% | 21.90 | - | 59.52 | 13.00 | 3.58 | 37.80 | -36.6842 |
| MS Morgan Stanley |
1.28 0.90% | 144.14 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 26.50 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
0.14 0.15% | 91.48 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
7.79 1.09% | 723.68 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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