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 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. 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. 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. 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.

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This article is originally published at Insider Monkey.