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Hut 8 fails to impress at the Analyst Day presentation
Public Bitcoin miner Hut 8 revealed its strategies for keeping up with other market participants during its first analysis day in nearly nine months.
Following a merger of equals last November with US-based Bitcoin Corp. (USBTC), Bitcoin miner Hut 8 is focusing on capital efficiency, cost control and profitable growth. According to a report by HC Wainwright crypto analyst Mike Colonnese, the plan failed to justify a bullish stance on the stock.
Ashen Genoot, CEO of Hut 8 and co-founder of USBTC, took the stage in Miami last week during his first Analyst Day post-merger.
Genoot’s vision was to optimize energy needs to maximize shareholder value, both through Bitcoin (Bitcoin) mining or providing a data center for high-density computing operations such as artificial intelligence (AI).
Losing market share to other Bitcoin miners
The Bitcoin halving devastated miners’ revenue as block rewards were reduced by 50%. Indeed, miner’s capitulation occurred when entities sold BTC holdings to fund operating expenses and costs.
Hut 8, one of the oldest miners in the industry, has seen this revenue drop more than some of its competitors. According to Colonnese, Hut 8 has lost market share to other public miners and has shown low utilization rates due to an inefficient mining fleet.
Lower-clocked miners have also led to a collapse in BTC production, meaning the company is lagging behind other companies on several fronts. As such, analysts maintained a sell rating, citing “nothing incremental or thesis changing from last week’s Analyst Day.”
Hut 8’s 1.1 GW pipeline and $150 million liquidity injection
Although Hut 8 is in a period of transition, the public Bitcoin miner boasts agreements that guarantee access to long-term, low-cost energy through a 1.1 gigawatt pipeline currently being rolled out.
The successful set-up and delivery of a new facility in Salt Lake, Texas, within three months has also apparently reinforced sentiment of a rapid turnaround in the company’s fortunes. Miami-based Bitcoin miner also lifted up $150 million from Coatue to build next-generation AI infrastructure, giving Hut 8 the runway to address problems and increase market presence.