The Globe and Mail reports in its Friday edition that H.C. Wainwright analyst Kevin Dede sees "strong" growth prospects for Hut 8 Mining ($10.44). The Globe's David Leeder writes that Mr. Dede began coverage of the bitcoin miner with a "buy" rating on Thursday. He targets the shares at $14. Mr. Dede points out that Hut 8's operations are centred in "energy rich" Alberta. Mr. Dede says in a note: "Despite the strong price run in bitcoin since late last year, we believe well managed miners should continue to perform well in what could be a prolonged bitcoin supply and demand imbalance. Advantages specific to Hut 8 offered investors include: (1) access to almost unlimited energy, both green wind and petrochemical, plus widely available space for facilities development; (2) new mining machines and hash rate expansion through the upgrade of existing locations; (3) solid, more than three-year hands-on experience managing its own mining fleet; and (4) financial leverage extracted from bitcoin holdings, which we see collectively leading to outsized stock returns. ... We see multiple factors enhancing investors perception of Hut 8 over the course of the year [leading to] expansion of the stock's valuation multiple."
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