Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 8 May, 25 | HUT | Speculative Buy | USD 13.4 | USD 14.9 | USD 15.5 | 4 days | 15.7% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
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.
Improved Mining Efficiency: Deployed hashrate rose to 9.3 EH/s, and fleet efficiency improved to 20 J/TH, supported by the ASIC fleet upgrade
Strategic Bitcoin Reserve Growth: Increased Bitcoin holdings to 10,264 BTC, representing a 13% year-over-year increase and a market value of $847.2 million
Reduced Bitcoin Production: Mined only 167 BTC in Q1 2025, a 77% decline from 716 BTC in the same quarter the prior year
Significant Financial Loss: Reported a net loss of $134.3 million, down from net income of $250.7 million in Q1 2024
Hut 8’s profitability and operational sustainability are heavily dependent on volatile Bitcoin market prices and high energy costs, exposing it to substantial financial and operational risk during periods of digital asset price compression.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 13.4 | 12.0 | 14.9 | 15.5 |
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.
Strategic Transformation into an Energy Infrastructure Platform
Hut 8 Corp. marked a pivotal strategic shift during the first quarter of 2025, advancing its evolution into a fully integrated energy infrastructure platform. This transition was highlighted by the launch of American Bitcoin, a majority-owned subsidiary focused solely on industrial-scale Bitcoin mining and strategic digital asset accumulation. CEO Asher Genoot emphasized that Q1 2025 represented a deliberate phase of investment, laying the groundwork for long-term value creation through diversified energy and compute capabilities.
Operational Enhancements in Power and Digital Infrastructure
The Company made notable progress in its power and digital infrastructure segments. It generated $4.4 million in revenue from power generation and managed services while initiating sitework on the River Bend campus in Louisiana, spanning 592 acres. Additionally, digital infrastructure revenue totaled $1.3 million, with continued construction at the 205 MW Vega site, which remains on track for energization in Q2 2025. The Company reported total energy capacity under management of 1,020 MW and a robust development pipeline of approximately 10,800 MW, including 2,600 MW under exclusivity.
Significant Upgrades in Mining Compute Efficiency
The first quarter also saw considerable improvements in Hut 8’s Bitcoin mining operations. The Company completed an ASIC fleet upgrade in early April 2025, increasing deployed hashrate to 9.3 EH/s and improving average fleet efficiency to approximately 20 joules per terahash (J/TH). Compute revenue—comprising Bitcoin mining, GPU-as-a-Service, and data center operations—reached $16.1 million for the quarter. Despite a sharp decline in the number of Bitcoin mined (167 BTC vs. 716 BTC in Q1 2024), the weighted average revenue per Bitcoin increased to $92,224, up 78% year-over-year.
Financial Performance and Asset Reserves
Hut 8 reported total revenue of $21.8 million for Q1 2025, down from $51.7 million in the prior-year period, with a net loss of $134.3 million compared to net income of $250.7 million in Q1 2024. The loss was largely driven by a $112.4 million loss on digital assets, in contrast to a $274.6 million gain in the previous year. Adjusted EBITDA fell significantly to ($117.7) million from $297.0 million. However, the Company expanded its strategic Bitcoin reserve to 10,264 BTC, representing a market value of $847.2 million as of March 31, 2025.
Capital Strategy and Shareholder Initiatives
Through its at-the-market (ATM) equity program, Hut 8 generated $275.5 million in net proceeds by selling 9.8 million shares at an average price of $28.23. These funds bolster the Company’s balance sheet, supporting further capital investment in infrastructure development and ASIC deployment. The formation of American Bitcoin also enables a more streamlined capital allocation framework, separating capital-intensive Bitcoin mining from other lower-cost-of-capital ventures such as high-performance computing.
Technology Innovation and Software Optimization
The Company has prioritized innovation in both hardware and software to support scalability and operational resilience. Enhancements include the energization of a direct-to-chip liquid-cooled test rack module at Salt Creek and the rollout of Reactor, a curtailment control solution tailored to optimize energy usage at the Vega site. Further improvements were made to Operator, a software suite designed to automate ASIC-level functions and increase operational efficiency across the mining fleet.
Technical Commentary:
HUT's stock has recently rallied after establishing support at key price levels, indicating an increased likelihood of further gains. The Relative Strength Index (RSI) is now above its midpoint, signaling strong bullish momentum and an accelerating upward trend. Additionally, the stock price has regained both its 21-day and 50-day Simple Moving Averages, reinforcing the expectation of continued upward movement in the near term.
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 13.40 as of May 8, 2025 (7:10 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 |
-0.19 1.13% | 16.64 | - | 59.52 | 13.00 | 3.58 | 37.80 | -36.6842 |
| MS Morgan Stanley |
-2.17 1.68% | 126.96 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| SCHW Charles Schwab Corp |
-1.24 1.39% | 87.94 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
1.61 0.27% | 608.13 | 18.44 | 10.60 | 2.83 | 1.16 | ||
| CIIHY CITIC Securities Co Ltd ADR |
- -% | 25.04 | 15.86 | 7.89 | 0.98 | 1.07 | 10.27 |
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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