Hut 8 a Clear Leader in Bitcoin Mining
Hut 8 Mining (HUT) is one of the many crypto mining stocks now in play with daily volatility tied to the movements of the currencies. HUT saw December 2022 $10 calls add 2000X to OI this week and recently has seen buyers in September $10, January $12.50, and March $12.50 calls while September $7.50 calls still have over 15,000 in OI from large buys on 8/5. HUT shares forming a bull flag on the daily with $7.40 a breakout level for a run to $10. HIT is one of the largest operators in the Western Hemisphere with 109 MW of installed power capacity and has multiple revenue streams through self-mining, hosting and interest income. HUT holds more than 3500 self-mined Bitcoins and has a 1300 PH/s contracted hashrate for mining. HUT 8’s mining power capacity is seen expanding to 209 MW by 2022 and is expected to be able to mine 10 Bitcoins per day based on current network dynamics. HUT, like the other mining plays, has significant leverage to Bitcoin prices. HUT currently has a market cap of $1.16B and trades 6X EV/Sales with revenues seen rising 345% in 2021 and 83.7% in 2022 while also being strongly profitable as EBITDA is seen reaching $200M+ by 2023. Craig Hallum started shares Buy with a $10 target earlier this morning noting the right combination of hash, power, agility and diversity as a clear leader in the space and a strengthening balance sheet.