Cabin 8 (Hut) is ready to spin most of its Bitcoin Mining for American Bitcoin (Abtc) Over the next week, a step that benchmark analyst Mark Palmer could say could over-rate the company’s shares.
Yesterday, HUT revealed 8 plans to develop 1.53 gigawatts (Gw) of new capacity across four American sites in Louisiana, Texas and Illinois, which more than doubles its power under management to 2.55 GW.
Palmer raised HUT 8’s price targets to $ 36 from $ 33 and repeated his purchase rating on the stock. The new price target suggests almost 40% on the head from yesterday’s closure just under $ 26.
Palmer noted that the update was significant because it showed a clear path to make money on HUT 8’s energy pipeline, where the company already secured earth and power agreements, builds infrastructure and dealer with potential customers.
By separating its mining in ABTC, HUT 8 aims to place itself as an energy infrastructure clean-play, giving it better access to cheaper project financing by avoiding volatility tied to Bitcoin revenue, says the analyst.
The company has up to $ 2.4 billion in liquidity to support the expansion, including $ 1.2 billion in Bitcoin, $ 330 million in credit facilities and a $ 1 billion share program noted the report.
Hytte 8 is a flexible effort on both Bitcoin and the artificial intelligence (AI)/High Performance Computing (HPC) Boom, Palmer said.
Read more: Bitcoin miner hut 8 jumps 15%, which leading sector higher after inking the 5-year energy supply agreement
