Hut 8 Corp. (HUT) shares are on the rise Friday following the company’s release of its September operational update. The report highlights key achievements in Bitcoin production, hashrate expansion, and the growth of its artificial intelligence (AI) subsidiary.
In September, Hut 8 produced 85 Bitcoin, a slight dip from the 87 Bitcoin produced in August. However, the company successfully increased its hashrate from 18.5 EH/s to 19.5 EH/s, demonstrating its commitment to boosting mining efficiency. Furthermore, the company brought 1,000 NVIDIA H100 GPUs online, bolstering its AI operations through its subsidiary, Highrise AI, Inc. These GPUs are now generating revenue for the company.
“We made significant strides in scaling our compute layer across Bitcoin mining and AI this month,” remarked Asher Genoot, CEO of Hut 8. The company is also forging ahead with a strategic partnership with Bitmain, launching a cutting-edge, DLC-cooled ASIC miner. This collaboration is aimed at achieving a 15 EH/s hosting deployment at the company’s Vega site in the Texas Panhandle by the first half of 2025. This expansion is expected to generate an estimated $135 million in annualized hosting revenue when fully operational. The agreement also includes a purchase option, paving the way for Hut 8 to acquire the hosted machines and expand its self-mining capacity to 20 EH/s.
Analyst George Sutton of Craig-Hallum remains bullish on Hut 8, maintaining a Buy rating and increasing the price target from $14 to $15. Benzinga Pro data reveals Hut 8 shares currently trading above their 50-day moving average of $11.71, with a strong upward trend over the past month, experiencing a gain of more than 30%.
At the time of publication on Friday, Hut 8 shares are up 1.75% at $11.94. The company’s focus on expanding its mining operations, diversifying into AI, and securing partnerships positions it for continued growth and potentially positive investor sentiment in the coming months.
