Hut 8 (HUT) Drops Hard on Profit-Taking

We recently published 10 Big Names Investors Are Dumping. Hut 8 Corp. (NASDAQ:HUT) is one of the companies that heavily bled in Thursday’s trading.

Shares of Hut 8 Corp. retreated by 7.87 percent on Thursday to close at $34.88 apiece as investors resorted to profit-taking following last week’s gains that saw the company propel to a new all-time high.

In other developments, Hut 8 Corp.’s (NASDAQ:HUT) newly listed subsidiary, American Bitcoin (NASDAQ:ABTC), announced its switch to a new auditor, KPMG LLC, effective September 19. The latter replaced RBSM LLP, which served as its independent auditor since last year.

Hut 8 Corp. (NASDAQ:HUT) owns the majority of American Bitcoin and was established to focus on building America’s Bitcoin infrastructure platform through the acquisition of Bitcoins.

Hut 8 (HUT) Drops Hard on Profit-Taking

Last week, Hut 8 Corp. (NASDAQ:HUT) earned a price target upgrade of $60 from investment firm Roth Capital, representing a 72 percent upside from its latest closing price. It also maintained a “buy” recommendation for its stock.

According to Roth, the upgrade was based on optimism for its high-performance computing (HPC) and AI infrastructure, as well as its affiliate, American Bitcoin’s progress towards hitting an operating hash rate of 25 EH/s.

Roth Capital said the new business structure was “one of the more well thought of” in the sector, enabling American Bitcoin to pursue its own crypto strategy while Hut 8 Corp. (NASDAQ:HUT) focuses on providing power and managed services.

Roth Capital believed that any announcement of a signed lease agreement for one of its campuses would bolster stock ratings in the future.

While we acknowledge the risk and potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.