Hut 8 fails to impress at Analyst Day presentation

Public
Bitcoin
miner
Hut
8
disclosed
its
strategies
for
keeping
up
with
other
market
participants
during
its
first
analyst
day
in
nearly
nine
months. 

Following
a
merger
of
equals
last
November
with
U.S.
Bitcoin
Corp.
(USBTC),
Bitcoin
miner
Hut
8
is
focusing
on
capital
efficiency,
cost
control,
and
profitable
growth. 
According
to
a
report
from
H.C.
Wainwright’s
crypto
analyst
Mike
Colonnese,
the
plan
failed
to
justify
a
bullish
stance
on
the
stock.

Hut
8
CEO
and
USBTC
co-founder
Ashen
Genoot
took
the
stage
in
Miami
last
week
during
its
first
Analyst
Day
since
the
merger.

Genoot’s
vision
pointed
to
optimizing
power
needs
to
maximize
shareholder
value,
whether
through
Bitcoin
(BTC)
mining
or
providing
a
data
center
for
dense
computing
operations
like
Artificial
Intelligence
(AI).

Losing
market
share
to
other
Bitcoin
miners

The
Bitcoin
halving
has
devastated
miner
revenues
since
block
rewards
have
been
slashed
by
50%.
Indeed,
miner
capitulation
occurred
as
entities
sold
off
BTC
holdings
to
finance
expenditures
and
operational
costs. 

Hut
8,
one
of
the
oldest
miners
in
the
space,
has
felt
this
revenue
drop
more
than
some
of
its
competitors.
According
to
Colonnese,
Hut
8
has
lost
market
share
to
other
public
miners
and
showed
low
utilization
rates
due
to
an
inefficient
mining
fleet. 

Under-clocking
miners
also
led
to
slumped
BTC
production,
meaning
the
company
is
lagging
behind
other
firms
on
several
fronts. As
such,
analysts
maintained
a
sell
rating,
citing
“nothing
incremental
or
thesis-changing
from
last
week’s
Analyst
Day.”

Hut
8’s
1.1
gw
pipeline
and
$150m
cash
injection

Although
Hut
8
is
in
a
transitionary
period,
the
public
Bitcoin
miner
boasts
deals
granting
access
to
long-term,
low-cost
power
through
a
1.1-gigawatt
pipeline
being
deployed.

Successfully
kitting
and
delivering
a
new
Salt
Lake,
Texas
facility
within
three
months
has
also
apparently
bolstered
sentiment
for
a
quick
turnaround
on
the
company’s
fortunes.
The
Miami-based
Bitcoin
miner
also
raised
$150
million
from
Coatue
to
build
next-gen
AI
infrastructure,
providing
Hut
8
with
the
runway
to
address
issues
and
boost
market
presence.