2023-07-07 12:45:00 ET
Hut 8 Mining ( TSX:HUT ) is a Toronto-based cryptocurrency mining company that operates in North America. This crypto stock has been a strong target during positive stretches for the digital currency space.
Today, I want to discuss how much you would have today if you had invested $2,000 in Hut 8 Mining stock in early July 2020. Moreover, I want to discuss whether this top crypto and blockchain stock is worth buying in the early summer of 2023. Let’s jump in.
How has Hut 8 Mining performed over the past year?
Shares of Hut 8 Mining have surged 82% month over month as of close on Thursday, July 6. This crypto stock is now up 323% so far in 2023. Its shares have soared 131% year over year. Investors who want to see more of its recent and past performance can play with the interactive price chart below.
Investors in cryptocurrencies have been on a rollercoaster ride in the early 2020s
The price of Bitcoin , the top digital currency by market capitalization, suffered the sharpest losses it had seen in years in late 2022. Bitcoin’s value dipped below the US$16,000 mark late last November. This punished investors who elected to purchase Bitcoin after its huge spike in late 2020. Indeed, the COVID-19 pandemic generated the most explosive bull market in the cryptocurrency’s history.
Canada made history when it became the first country to introduce a Bitcoin-focused exchange-traded fund (ETF) back in February 2021. Purpose Bitcoin ETF ( TSX:BTCC.B ) is down from its inception price, but the fund has surged 77% so far in 2023.
BlackRock , the largest asset manager on the planet, filed with the U.S. Securities and Exchange Commission (SEC) for approval of a spot Bitcoin ETF . Bitcoin has already gone mainstream, at least when it comes to its exposure among the general populace. However, this move would mean that a huge swathe of retail investors would now be able to invest in the top digital currency. That is good news for the cryptocurrency space.
Has Hut 8 Mining rewarded the faithful?
Hut 8 Mining has been a beneficiary of this potentially big step forward for the cryptocurrency market . This company released its first-quarter fiscal 2023 earnings on May 11. It saw a huge reduction in digital assets mined to $475 million compared to $942 million in the first quarter of fiscal 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This company reported an adjusted EBITDA loss of $3.69 million compared to adjusted EBITDA of $27.1 million in the previous year.
On July 7, 2020, Hut 8 Mining stock closed at $1.11 per share. At this point, we could have snatched up 1,801 shares of this crypto stock for a purchase price of $1,999.11. Shares of Hut 8 Mining closed at $4.79 per share on Thursday, July 6. That means our original 1,801 shares would be worth $8,626.79. This stock has soared over 330% since its close on July 7, 2020.
Is this crypto stock worth buying today?
Bitcoin and the crypto market at large are in a great position to catch fire after receiving this big public boost from BlackRock. Meanwhile, Hut 8 Mining is still on track for strong earnings growth going forward. This crypto stock may still have a lot of room to run in 2023.
The post If You’d Invested $2,000 in Hut 8 Mining in 2020, Here’s How Much You’d Have Today appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin. The Motley Fool has a disclosure policy .
2023