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HUT was traditionally a bitcoin miner, but like many other miners, it has pivoted some of its strategy toward high performance computing (HPC). It defines itself as an energy infrastructure platform, where it operates three main segments: 1) Power: acquiring and managing energy assets like powered land, 2) Digital infrastructure: purpose-built facilities for energy-intensive applications, and 3) Compute: specialized hardware for bitcoin mining and data center cloud GPU-as-a-service. It is a heavily-shorted stock, which has led to some of its high volatile moves, but it is also benefiting from the rise in crypto prices and increasing interest in AI compute. Analyst estimates are rising, and although it is not yet profitable and is cash flow negative, we could see its price continue to rise if its HPC segment grows and digital asset prices increase. Unlock Premium - Try 5i Free
HUT operates energy infrastructure platforms for the development of data centres and bitcoin mining in North America. It recently announced it has created "American Bitcoin" in conjunction with Eric Trump. It trades at 4x earnings, 1.3x book and supports a 45% ROE. We recommend setting a stop-loss at $10, looking to achieve $24 -- upside potential of 28%. Yield 0%
(A Top Pick May 01/25, Up 29.8%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with HUT has achieved its target at $24. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10) to $15.
HUT was traditionally a bitcoin miner, but like many other miners, it has pivoted some of its strategy toward high performance computing (HPC). It defines itself as an energy infrastructure platform, where it operates three main segments: 1) Power: acquiring and managing energy assets like powered land, 2) Digital infrastructure: purpose-built facilities for energy-intensive applications, and 3) Compute: specialized hardware for bitcoin mining and data center cloud GPU-as-a-service. It is a heavily-shorted stock, which has led to some of its high volatile moves, but it is also benefiting from the rise in crypto prices and increasing interest in AI compute. Analyst estimates are rising, and although it is not yet profitable and is cash flow negative, we could see its price continue to rise if its HPC segment grows and digital asset prices increase.
Unlock Premium - Try 5i Free