Hut 8 Mining Reports Disappointing Q4: Installed Hashrate Down 25%

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• Hut 8 Mining Corp (TSE: HUT) reported disappointing results for its fourth financial quarter, with digital assets mined down year-on-year.
• Wall Street currently has a consensus “overweight” rating on the stock, with an average price target of $3.38.
• The company recently announced plans to merge with US Bitcoin Corp in an all-stock transaction.

Hut 8 Mining Reports Fourth Quarter Earnings

Hut 8 Mining Corp (TSE: HUT) is trading down this morning after reporting disappointing results for its fourth financial quarter. Digital assets the Toronto-headquartered firm produced in Q4 were 698 versus a much higher 789 in the same quarter last year. In the earnings press release, CFO Shenif Visram said: We continued to fastidiously manage our finances through the fourth quarter, which allowed us to navigate sustained bitcoin price suppression, fluctuating power prices and increased network difficulty. The crypto company’s installed hashrate currently sits at about 2.5 EH/s.

Wall Street Consensus Rating

Wall Street currently has a consensus „overweight“ rating on the Hut 8 Mining stock and sees upside in it to $3.38 on average – about a 75% premium on its current price. Notable figures in Hut 8 Mining’s earnings report include lost C$186.7 million versus the year-ago C$111.2 million; per-share loss widened from 67 cents to 90 cents; swung to an adjusted EBITDA loss of C$3.9 million; revenue also declined about 62% YoY to C$21.8 million; and analysts had forecasted a higher C$24.5 million of revenue .

Merger With US Bitcoin

Last month, Hut 8 Mining said it will merge with US Bitcoin Corp in an all-stock transaction according to CEO Jaime Leverton who stated that they would continue „to uphold our operating principles as we work to close business combination with USBTC and begin operating as a US-domiciled, digital asset mining, hosting organisation.“ Versus its year-to-date high, Hut 8 Mining stock is now down more than 40%.

Current Forecast

Currently analysts have given Hut 8 Mininga consensus “overweight” rating and see potential upside of 75% from their current trading price of $1..90 up to $3..38 by averaging all ratings given by different analysts across wall street

Conclusion

Despite coming off a tough Q4 due largely in part due to bitcoin’s suppressed prices throughout most of 2020, Hut 8 mining continues forward looking towards positive gains expected out of 2021 through their merger with US Bitcoin corp while maintaining their commitment working principles as they look towards becoming domiciled under US jurisdiction