Hut 8 stock has been rising for three straight months and is nearing its highest price this year as the company prepares to report earnings.
summary
- Hut 8’s stock price has risen for three consecutive months.
- The company formed a cup-and-handle pattern.
- It is scheduled to announce financial results later on Tuesday.
Hut8, a leading company in the Bitcoin (BTC) mining and upcoming artificial intelligence data center industry, has risen more than 1,285% from its 2023 lows to $57. This surge has given the company a market capitalization of more than $6.2 billion.
Because Hut 8 is focused on the data center industry, it has performed well despite the continued collapse in Bitcoin prices. We recently signed a major deal with Anthropic, the creators of Claude.
The deal will result in the construction of the Riverbend campus, which will have an infrastructure capacity of 2,295 megawatts divided into three tranches. This contract will be worth billions of dollars over the next few years.
The next big catalyst for the Hut 8 stock price will be its earnings, which are scheduled to be released on Tuesday.
Revenue will be $95 million, a 200% increase compared to the same period in 2024, according to data compiled by Yahoo Finance. Annual revenue is expected to exceed $241 million, up 48% on an annual basis.
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The deals with Anthropic and Google are expected to boost revenue this year to more than $425 million, an increase of 76% on an annualized basis. Analysts also expect 2024 earnings per share to be a loss of 15 cents, compared to a profit of 1.55 cents in the same period.
Wall Street analysts are generally bullish on the company. Slightly bullish stocks include Wainwright HC, Ross Mkm, and KBW, with targets of $80, $80, and $75 million, respectively. The average analyst target is $64, representing a 12% increase from current levels.
Hut 8 stock technical analysis
HUT stock price chart |Source: TradingView
The monthly timeframe chart shows that Hut 8 stock has made a strong comeback over the past few years. It rose from a low of $3.65 in 2023 to current levels.
The stock has been rising for the past three months and is nearing this year’s high of $66. It also exceeded the 50-month moving average.
If you look closely, you can see that the price has formed a cup-and-handle pattern, with the top reaching an all-time high of $82.70. Such a move would imply an increase of 40% from current levels.
However, keep in mind that this pattern is formed on a monthly chart and its results can take months or years to complete.
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