Hut 8 Mining: Just Like Holding Bitcoin, But Only Better

Jan. 14, 2022 6:17 AM ETHut 8 Mining Corp. (HUT), HUT:CABTC-USD18 Comments
Made Easy - Finance profile picture
Made Easy - Finance
1.56K Followers

Summary

  • HUT's balance sheet-first mindset is evident from its monthly Bitcoin holding growth, 302 BTC added monthly in Q3, 40% more than BITF, 300% more than RIOT.
  • HUT holds 5,518 BTC, which contributes to (almost) one-fourth of HUT's entire market cap. Our model found that the other 75% ($900mil) represents a fair price for its underlying business.
  • Our model found that HUT is fairly valued because HUT only guided investors until mid-2022 (less than 6 months) with the expectation of achieving 6 EH/s by then.
  • The good news is Q4 QE is just around the corner. Any hint of expansion beyond 6 EH/s should be taken as a bullish signal, assuming a stable $50,000 Bitcoin.
  • HUT's balance sheet-first mindset will appeal to prospect Bitcoin miners, but overall weakness in the stock and crypto markets might provide investors with better entry prices.

golden hand holding a bitcoin

AntonioSolano/iStock via Getty Images

Balance Sheet-first Is Music to Hodlers' Ears

Hut 8 Mining Corp. (NASDAQ:HUT) introduces itself as a balance sheet-first and ESG-conscious Bitcoin (BTC-USD) mining company. We're HODLers ourselves at Made Easy Finance, and this is

Hut 8 Mining Bitcoin Holdings

HUT

Hut 8 Mining Q3 income statement

HUT

HUT

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This article was written by

Made Easy - Finance profile picture
1.56K Followers
Thesis | Price Targets | Analytics | Newsletters.We're a team of analysts that focus on researching and deploying transparent and easy-to-follow methodology to suggest conservative price targets for companies. We primarily focus on growth companies and cryptocurrency. Value and dividend companies are covered occasionally..Follow us for more timely and short-form updates: Twitter: https://twitter.com/madeeasyfinance Instagram: https://www.instagram.com/madeeasyfinance/

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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