Hut 8 Mining Corp. (HUT), one of North America’s largest, innovation-focused digital asset mining companies, provided a production update for November 2021.
In November 2021, the company mined 265 Bitcoins, which resulted in an average production rate of 8.83 Bitcoin per day. Further, all the self-mined Bitcoin for the month of November were deposited into custody, in line with Hut 8 Mining’s Hodl strategy. Markedly, as of November 30, 2021, the total Bitcoin balance held in reserve stood at 5,242.
Shares of the company closed almost 11% lower on Thursday.
Mining Equipment Deployment Update
In November, Hut 8 Mining completed the deployment of NVIDIA (NVDA) chips at its site in Medicine Hat, Alberta. Notably, the NVIDIA CMPs have been deployed to mine the Ethereum network via Luxor pool, and consistent with the company’s Hodl strategy, payouts are received in Bitcoin.
Official Comments
Head of Technology at Hut 8 Mining, Jason Zaluski, commented, “Our NVIDIA CMP deployment is contributing revenue of approximately $140,000 per day, based upon current mining economics. Given the low power intensity of these chips, our cost per Bitcoin of approximately $3,000 means we are achieving unit margins in excess of 95%.” (See Hut 8 Mining stock charts on TipRanks)
Wall Street’s Take
On November 12, Canaccord Genuity analyst Joseph Vafi reiterated a Buy rating on the stock and increased the price target to $20 (90.66% upside potential) from $12.
Vafi acknowledges that Hut 8 Mining has an impressive track record across the Bitcoin mining industry, having been in this space since 2018. The analyst views the company in growth mode at present, given the new management regime since December.
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Shares of Hut 8 Mining have exploded 159% over the past six months. The stock scores a Strong Buy consensus rating based on 4 unanimous Buys. That’s alongside an average Hut 8 Mining price target of $18.43, which implies 75.73% upside potential to current levels.
Investors
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Hut 8 Mining, with 14.7% of investors maintaining portfolios on TipRanks increasing their exposure to HUT stock over the past 30 days.
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