Hut 8 Mining Announces Corporate Update


This article was originally published on TipRanks.com

Hut 8 Mining Corp (TSE: HUT), one of the largest innovation-driven digital asset extraction pioneers in North America, announced a business update on Wednesday.

Highlights of Mining Production for December 2021 

In December, 276 Bitcoins were mined, resulting in an average production rate of 8.9 Bitcoins per day.

All of the self-mined Bitcoins for the month of December have been deposited in custody, in accordance with Hut 8’s Hodl strategy.

The total Bitcoin balance held in reserve is 5,518 as of December 31, 2021, an increase of 97% from the end of the previous year.

The installed operating capacity currently stands at 2.0 EH/s, a 125% increase in hashrate compared to December 31, 2020.

Management Commentary 

Hut 8 Mining CEO Jaime Leverton said, “This has been a tremendous year for our industry and I congratulate not only the Hut 8 team, but every single one of our peers who have worked hard to build meaningful operations in North America. 2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations.

“We are business-building technologists, with a focus on diversification, while keeping Bitcoin mining at our core.  I have been driving innovation and transformation in the technology industry for over 20 years and have never been more excited or energized when looking forward to the year ahead.”

Equipment Financing With Trinity Capital 

On December 30, 2021, Hut 8 Holdings Inc., a wholly owned operating subsidiary of the company, entered into a $30-million senior secured equipment financing term loan with Trinity Capital Inc.

The loan is repayable over a period of three years and bears interest at 9.5%.

Wall Street’s Take 

Two months ago, Canaccord Genuity analyst Joseph Vafi kept a Buy rating on HUT and raised its price target to $20 (C$25.54). This implies 155.9% upside potential.

Vafi said that Hut 8 Mining has one of the most seasoned backgrounds in the Bitcoin mining industry, operating in this space since 2018. He said that with new management in place since December, the company is now in growth mode.

Overall, Hut 8 Mining stock scores a Strong Buy consensus rating based on four Buys. The average Hut 8 Mining price target of C$23.56 implies upside potential of about 136.1% to current levels.

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