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Tag: Hut 8 Mining Corp

  • Hut 8 Mining Corp. (HUT) Rebounds After Hours Following a Steep Fall

    Hut 8 Mining Corp. (HUT) Rebounds After Hours Following a Steep Fall

    On January 27, Hut 8 Mining Corp. (HUT) stock made a comeback in the after-hours following its descent to a low of $5.10 in regular trading. No official news seems to be responsible for the recovery of the stock.

    HUT stock closed the regular session at $5.12, suffering a huge loss of 11.11%. The stock saw a reversal in the after-hours as it gained 7.42% at $5.50.

    What is happening with HUT?

    While the stock had already been in a downtrend, it hit the low of $5.10 on Thursday. The stock fell down to such a low after nearly six months. HUT closed the session just above the low at $5.12. Given that there is no official announcement or recent SEC filing, the brush down might have caused the stock to rebound. Hitting such a low might have presented a good buying opportunity for some investors as the stock picked up after-hours.

    2021 and 2022 Comparison

    So far, 2022 has proved very dull for the stock as it has lost 34.78% year to date. While HUT gained a good 29.62% last year, it has been losing for the past three months. The reason for this downfall is the ongoing uncertainties in the crypto market over rising inflation and talks of its high energy consumption. 2021 saw a huge upsurge in the crypto market as most of the big names hit all-time-highs on crypto being the new big. But the hype could not last long as many started revolting against it due to its high energy demand. Moreover, the Covid-19 pandemic and high inflation rates also played a role in the downfall and are still doing so.

    HUT’s Recent Developments

    On January 20, the company announced a definitive agreement with TeraGo Inc. As per the agreement, HUT will acquire the cloud and colocation data center from TeraGo.

    Furthermore, the purchase will comprise five data centers throughout Canada from Toronto to Vancouver. As part of the acquisition, the company will acquire customers, employees, and a diverse product offering from TeraGo.

    Further, HUT will pay a consideration of C$30 million to TeraGo and the transaction is expected to close in Q1 of 2022.

    On January 11, the company announced joining the Business Renewables Center Canada (BRC Canada). BRC Canada works with experts to speed up renewable energy uptake in Canada.

    On November 11, HUT reported a diluted net income of $0.15/share on revenue of $50.3 million in Q3 of 2021. Comparatively, the company had a diluted net loss of $0.01/share on revenue of $5.75 million in the year-ago quarter.

  • On What Basis Did Hut 8 Stock Rises 17% Today?

    Hut 8 Mining Corp. (HUT) has gained 17.85% to $4.92 in the current market price on Monday. HUT stock ended the prior trading session at $4.09. HUT 8 traded in the range of $4.00 to $4.29 in the current session. Hut stock exchanged 2.93 million shares so far in the current session, a volume that exceeded its average daily trading volume of 1.46 million shares for the last 100 days.

    HUT shares have gained 3.81% over the last five days and 13.10% over the past month. Since HUT stock rose in the absence of any current information, there may be some reason to believe recent developments could provide additional insight regarding it.

    How has Hut 8 been recently?

    Hut 8 is a North American company with a unique focus on innovation and decentralized systems, integrating them into its mining operation. With one of the highest installed capacity rates in the business and more self-mined Bitcoin than any publicly traded company or crypto miner worldwide, HUT is located in energy-rich Alberta, Canada.

    In addition to profitable digital asset mining, HUT offers high-performance computing services and yield & income programs based on its Bitcoin reserves. HUT is helping define the digital asset revolution with innovation, imagination, and passion to create value and benefits for its shareholders and subsequent generations.

    A mutual agreement between Hut 8 Mining and Bitfury BV has terminated the historical Investor Rights Agreement (“IRA”) between the two companies.

    • HUT has been in partnership with Bitfury for a number of years and has enabled it to advance bitcoin mining in Canada.
    • The termination of the IRA will result in Bitfury losing its right to nominate a board member to Hut 8.
    • For the sake of working through the transition, Hut 8 has allowing Jeremy Sewell’s resignation to be delayed until January 1, 2021 to allow the Hut 8 Board time to transition.
    • Late last month, Hut 8 purchased 11,090 MicroBT M30S, M30S+, and M31S miners from SuperAcme Technology (Hong Kong) Limited (“SuperAcme”) for $44.373 million USD, or $44/terahash.
    • Delivery of the miners will begin in October 2021, with HUT expecting the full deployment in December 2021.
    • In addition to this purchase, earlier in the prior week HUT purchased 863 M30S+ and M30S units that will be delivered and deployed by July 2021.

    How will these purchases increase HUT’s capacity?

    As a result of both purchases, Hut 8’s installed capacity should increase by approximately 2.5 E/H, which is in addition to previously announced investments. In partnership with Validus Power, the new fleet of miners will comprise the first operational fleet for the 100 MW facility that the HUT plans to build.