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