Hut 8 (NasdaqGS:HUT): Reassessing Valuation After ABTC Selloff and Crypto Market Weakness

Hut 8 (NasdaqGS:HUT) is back in focus after its spinoff, American Bitcoin Corp. (ABTC), dropped more than 85% over the past three months, amplifying selling pressure amid an already shaky crypto backdrop. See our latest analysis for Hut 8. Even with the latest drop to around $41.31 and the ABTC overhang weighing on sentiment, Hut 8 still boasts a strong year to date share price return. However, momentum now looks more fragile than earlier in the year as crypto volatility creeps back in. If this mix of sharp pullbacks and big upside has your attention, it might be worth seeing what else is moving and comparing Hut 8 with high growth tech and AI stocks. With Hut 8 still up strongly this year but facing ABTC related pressure and crypto turbulence, is the stock now trading below its true potential, or are markets already pricing in its next leg of growth? Most Popular Narrative Narrative: 26.4% Undervalued With Hut 8 last closing at $41.31 against a narrative fair value of about $56, the current setup implies substantial upside if the thesis plays out. The Power First strategy, featuring sizable pipeline origination (10.8 GW under diligence, 3.1 GW under exclusivity) and dual-purpose sites for both Bitcoin mining and AI compute, provides scalability and flexibility to benefit from rising institutional adoption of digital assets and accelerating demand for clean energy-powered blockchain infrastructure, bolstering future revenue and earnings growth. Read the complete narrative. Want to see what kind of growth profile could justify that kind of upside? The narrative leans on aggressive top line expansion and a punchy earnings multiple. Curious which revenue mix shift and margin path are doing the heavy lifting in that math? Read on to unpack the full playbook behind this fair value. Result: Fair Value of $56.13 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, sustained Bitcoin weakness and tougher fossil fuel regulations could delay Hut 8's multi gigawatt build out and squeeze long term returns. Find out about the key risks to this Hut 8 narrative. Build Your Own Hut 8 Narrative If this view does not quite fit your take, or you would rather review the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way. A great starting point for your Hut 8 research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision. Ready for more high conviction opportunities? Before the market moves on without you, put Hut 8 in context by scanning other powerful themes and potential winners using the Simply Wall Street Screener. Capture early-stage potential by targeting resilient up-and-comers through these 3612 penny stocks with strong financials with balance sheets and cash flows that actually stack up. Ride structural tailwinds in automation, data, and model training by zeroing in on these 26 AI penny stocks shaping the next wave of AI breakthroughs. Position ahead of sentiment shifts by focusing on these 13 dividend stocks with yields > 3% that can strengthen total returns with reliable income. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.