United States Bitcoin BTCUSD miner Hut 8’s plans to expand its self-mining operations and its scope of diversified revenue streams will make it more competitive in a post-halving world, according to investing banking firm Benchmark.
In an April 22 research note viewed by Cointelegraph, Benchmark senior analyst Mark Palmer explained that the “new HUT” — a firm borne out of a merger between the “old HUT” and US Bitcoin Corporation — boasted a “diversified business model” with multiple revenue streams.
Benchmark initiated coverage of Hut 8 stock and set a $12 price target — a near 30% increase from its current share price of $9.22, per TradingView data.
Hut 8’s current self-mining hash rate of 5.4 exahash per second (EH/S) remains far below that of self-mining category leader Marathon Digital which has a deployed rate of 27.8 EH/s, but despite this, Palmer said he expects this gap to close over time.
“Hut trades at a discount to its Bitcoin mining peers that we expect to shrink as the company executes on its self-mining expansion plans.”
Palmer looked to Hut 8’s multiple revenue streams, which include self-mining, cloud computing, high-performance computing, and artificial intelligence services, as justification for his price target.