Hat 8 (shed) is set to spin out most of the bitcoin BTC$111,187.10 Next week’s mining operations for US Bitcoin (ABTC) are a move that benchmark analyst Mark Palmer said could revalue the company’s stock.
Yesterday, Hut 8 announced plans to develop a new capacity of 1.53 gigawatts (GW) at four US sites in Louisiana, Texas and Illinois.
Palmer has increased its Hut 8 price target from $33 to $36, repeating its stock purchase rating. The new price target suggests a rise of nearly 40% since just below $26 since the end of yesterday.
Palmer said the update is important as it presents a clear path to monetizing the Hut 8 energy pipeline. The company has already secured land and electricity agreements, built infrastructure and negotiated with potential customers.
By separating mining operations into ABTC, Hut 8 aims to position itself as a pure play in energy infrastructure, aiming to improve access to cheaper project finance by avoiding the volatility associated with Bitcoin revenue.
The company has up to $2.4 billion in liquidity to support expansion, including $1.2 billion in Bitcoin, $330 million credit facilities and a $1 billion equity program, the report said.
Hut 8 is a flexible bet on both the Bitcoin and the Artificial Intelligence (AI)/High Performance Computing (HPC) boom, says Palmer.
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