Buy the Dip in Bitcoin Miner Hut 8 (HUT), Says Benchmark's Mark Palmer

Benchmark analyst Mark Palmer considers the recent decline in Hut 8 shares, which fell nearly 13% following a disappointing earnings report, as an overreaction by investors. Despite the lack of an AI hyperscaler tenant announcement for its River Bend data center, Palmer maintains a bullish outlook, reiterating a buy rating and a price target of $78. He underscores Hut 8's long-term potential in AI, energy, and bitcoin infrastructure, indicating that the absence of a deal is temporary and that the company’s disciplined approach will pay off. The recent crypto market downturn affected Hut 8 disproportionately, although the stock showed a recovery on Wednesday, rising by 4%. Palmer emphasizes Hut 8's strategic positioning with its 1,530 MW power pipeline and projects continuous growth alongside increasing demand for data centers from AI firms. Genoot's comments reflect a focus on durable strategies rather than hasty decisions, which could benefit investors waiting for execution before awarding higher valuations.

Source 🔗