2024-01-29 10:08:34 ET
Summary
- HUT falls into our "slow or unsteady loses the race" Bitcoin miner Bucket and must step up its expansion efforts.
- At worst, USBTC-merger may not have shareholder's best interest in mind; At best, it is a move out of desperation to solve the declining Bitcoin Production.
- Amidst the many controversies around JCapital Research's short report, many of our findings align with it.
- HUT has one of the worst cost efficiencies at $80k per BTC and HUT might've also overpaid for USBTC by 10x.
- HUT's USBTC merger could spark a broader sector consolidation as the halving event could render more Bitcoin mining businesses unfeasible.
Introduction
This Hut 8 Mining ( HUT ) analysis came right after we analyzed Bitfarms ( BITF ). Coincidently, our take on BITF was that BITF's declining Bitcoin ( BTC-USD ) production was caused by a slow expansion rate. The slow expansion eventually caused BITF to lose its share in the Bitcoin network, which directly reduced Bitcoin production. That's how we phrased it " Slow and steady loses the race ." We highly recommend reading it to grasp the full context of this article....
Read the full article on Seeking Alpha
For further details see:
Hut 8 Post-Merger Comprehensive Thesis: JCapital Research Might Be Right