Bitcoin Miners to Buy: Hut 8 (HUT)
HUT stock has also been in a correction model like all Bitcoin miners. At a forward price-to-earnings-ratio of 17, the stock looks attractive. If Bitcoin resumes an uptrend, I would not be surprised if the stock doubles in the next six to 12 months.
For Q3 2021, Hut 8 reported revenue of 50.3 million CAD ($39.7 million) and the company had an installed hash rate of approximately 1.6 EH/s. However, by the end of Q1 2022, Hut 8 expects the installed hash rate to increase to 3.35 EH/s.
Therefore, it’s very likely that Hut 8 is positioned for quarterly revenue in excess of $80 million in Q2 2022 and beyond. Furthermore, the company’s contracted capacity as of Q3 2021 was 4.5 EH/s. In other words, revenue growth will sustain beyond Q2 2022.
It’s also worth noting that as of January 2022, the company had reserves of 5,826 Bitcoins. This provides financial flexibility for pursuing further growth opportunities. Hut 8 had 144 MW in terms of power capacity as of 2021. In the current year, the company expects the capacity to increase to 209 MW. This sets stage for sustained growth in Bitcoin mining.
Overall, HUT stock trades at an attractive valuation with the company having growth visibility through 2022. It’s another stock that’s worth considering for a sharp reversal.
