Home Market Hut 8 Mining stock down on a big hit to Q1 revenue: buy the dip?

Hut 8 Mining stock down on a big hit to Q1 revenue: buy the dip?

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  • Hut 8 Mining reports a 64% year-on-year decline in first quarter revenue.
  • Analysts at Craig Hulme see HUT’s downside at C$2.0 per share.
  • Hut8 Mining stock is currently down nearly 30% from its year-to-date high.

Hut8 Mining Corporation is down in Thursday trading after it reported a significant year-on-year decline in first-quarter sales.

Hut 8 Mining Q1 Report Notable Figures

  • Earnings per share of $0.47 CAD and expected loss of $0.15 per share
  • Revenue fell to C$19 million, 64% higher than expected
  • 475 bitcoins mined – down about 50% compared to a year ago
  • Installed hashrate increased to 2.6 EH/s this quarter

At its Ontario facility, Hut 8 Mining had to power down approximately 8,000 machines due to a dispute with Validus Power Corp. press releaseCEO Jamie Leverton said:

In early 2023, we had a lot of events coming together. Electrical problems at the Drumheller site caused equipment failures, volatile energy prices, and increased network outages.

Hut8 Mining shares are down nearly 30% at the time of writing from their year-to-date highs.

Are Hat8 Mining Stocks Worth Buying?

So far, only 1,000 of those machines at our Ontario facility are back online, that alberta mine is running at just 15% of its installed hashrate.

Hut 8 Mining currently supports USBTC or US Bitcoin Company. According to the Chief Executive Officer:

Progress has been made regarding the key regulatory files required to complete the transaction. The Medicine Hat facility also reached an operational high of 1.72 EH/s.

Despite underperformance, taking a position in the Canadian company today may not be the best idea considering analysts at Craig Hulme repeated a ‘hold’ rating for Hut8 Mining stock this week. . His target price of C$2.0 suggests a further 10% drop from here.

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