The new Hut 8 subsidiary (HUT), American Bitcoin Corp., a partnership between the mining company and the Trump family, could be turned, allowing the company to focus on the accommodation of the data center, Broker Clear Street said on Monday.
The broker noted that the new unit will be included in the finances of the minor Bitcoin, but the “companies could be separated, allowing the cabin to focus on accommodation income from the high margin data center”.
Hut 8 should secure more energy and extend your data center accommodation business, depending on the report, and the “potential to secure a hyperscaller” is a key catalyst for the company.
Eric Trump and Donald Trump Jr. merger their business, American Data Centers, with American Bitcoin, a new mining company, taking a 20% stake in the company. The remaining 80% will belong to Hut 8, which contributes nearly 61,000 mining machines to the new entity.
Core Scientific (CORZ) deals with Cloud Computing Coreweave led to a reassessment of the sector last year, while investors warmed up at the idea of bitcoin minors who rotate towards artificial intelligence and high performance computer (HPC).
Hut 8 is expected to enter a considerable growth phase, from the second half, “driven by the boosting of the Bitmain colocation agreement,” added the report.
Clear Street has a purchase rating on Hut 8 shares with a price target of $ 23. The shares were more than 4% at $ 12.10 at the start of negotiations.
The KBW investment bank noted that Eric Trump will serve as director of the American Bitcoin strategy, who could be a big positive given his “commitment to industry as well as his obvious relations”.
KBW has an outperformance note on action with a price target of $ 30.
