• 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 Hut 8 Mining stock and sees upside in it to $3.38 on average – about a 75% premium on its current price.
• Last month, Hut 8 Mining said it will merge with US Bitcoin Corp in an all-stock transaction.
Overview of Hut 8 Mining’s Fiscal Q4
Hut 8 Mining Corp (TSE: HUT) reported disappointing results for its fourth financial quarter, with digital assets mined down year-on-year from 789 to 698. CFO Shenif Visram commented that the company managed their finances well through the fourth quarter despite bitcoin price suppression, fluctuating power prices and increased network difficulty. Despite this, Wall Street still 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.
Financials
Hut 8 Mining reported a consolidated net loss of C$186.7 million versus last year’s C$111.2 million loss, while per-share loss also widened from 67 cents to 90 cents and swung to an adjusted EBITDA loss of C$3.9 million compared to C$11 million profit last year. Revenue declined by 62%, reaching only C$21.8 million instead of the expected C$24.5 million revenue analysts had forecasted for them this quarter as well as their installed hashrate currently sitting at about 2.5 EH/s .
Merger Announcement
Last month, Hut 8 Mining announced that they will merge with US Bitcoin Corp in an all-stock transaction which CEO Jaime Leverton commented would allow them continue to uphold their operating principles and begin operating as a US-domiciled, digital asset mining, hosting organisation once closed . The company’s stock is now down more than 40% from its year-to-date high .
Conclusion
Overall, Hut 8 Mines‘ reported results were disappointing as digital assets mined were lower than expected and revenue was also significantly lower than forecastsed due mainly to bitcoin price suppression and other issues such as fluctuating power prices and increased network difficulty that made it difficult for them to operate effectively during this period . Despite this though , analysts are still betting long term on the company seeing significant potential growth in the future , especially once they complete their merger with US Bitcoin Corp .