Hut 8 Reports Strong Q3 Results, Analysts Boost Price Targets Amid Transition to Low-Cost Bitcoin Production and AI Expansion
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Hut 8 recently shared its third-quarter results, and there’s a lot to discuss. They reported revenues of $44 million, which is higher than the expected $35 million. They also had a loss of 13 cents per share, beating the forecasted loss of 29 cents.
Analyst John Todaro from Needham is optimistic. He reiterated a Buy rating and raised the price target from $21 to $32. He pointed out that Hut 8 is shifting from being one of the highest-cost Bitcoin producers to one of the lowest. This transition is significant.
Efficiency improvements and reduced power costs are likely to boost Hut 8's EBITDA growth through 2025. They have an impressive development pipeline of over 5 gigawatts (GW) of energy capacity, with 1.5 GW under exclusivity as of October 31. That’s among the highest in the industry.
Mark Palmer from Benchmark also maintains a Buy rating, raising his price target to $32. He noted that Hut 8's efforts to build and commercialize its next-generation digital infrastructure are accelerating. The company is well-positioned for growth in both AI computing and Bitcoin mining.
Management highlighted their development pipeline, which includes three sites with more than 430 megawatts (MW) of combined capacity. These sites are perfect for large-scale AI data center projects. Palmer emphasized that Hut 8 stands to benefit from the expected surge in demand for AI data center capacity.
Additionally, Hut 8 launched its subsidiary, Highrise AI, in Q3 2024. This venture offers GPU-as-a-Service, featuring over 1,000 Nvidia H100 GPUs. This positions Hut 8 well in the growing AI market.
At the time of writing, Hut 8's shares had dipped by 2.06%, trading at $24.25. It’s a dynamic time for the company, and investors are watching closely.