According to Blockworks, Bitcoin miner Hut 8's diversified revenue streams could potentially give it a long-term advantage over its competitors, as per analysts at Benchmark. The research firm began covering the stock three days after the Bitcoin halving, when per-block rewards decreased from 6.25 BTC to 3.125 BTC. Senior equity research analyst at Benchmark, Mark Palmer, assigned Hut 8 a buy rating and a price target of $12, approximately 50% higher than its current trading level.
Hut 8's 2025 enterprise value-to-revenue multiple is 2.6, compared to the average 3.1 multiple of its competitors, based on Benchmark data. This research considered the multiples of Marathon Digital, Riot Blockchain, CleanSpark, Bitfarms, Cipher Mining, Iris Energy, Hive Digital Technologies, and TeraWulf. The figures are based on consensus 2025 revenue estimates, and the enterprise values include the companies’ net debt balances.
Palmer stated that Hut 8 is expected to close the valuation gap with listed peers that are further along in boosting their self-mining capacity as it executes on the build-out of its platform. Investors are currently focused on self-mining due to expectations that the price of bitcoin will rally aggressively following the latest halving. Hut 8’s self-mining deployed hash rate is 5.4 exahash per second (EH/s), lagging behind some of the space’s largest players.
However, Palmer believes that the diversity of Hut 8’s platform will benefit it over the long-term, as its revenue streams outside of self-mining position it to weather severe downturns in bitcoin’s price better than most of its listed peers. This comes after Hut 8 and US Bitcoin Corp. underwent a “merger of equals” that closed in November. The combined company has business lines focused on managed services, hosting, high-performance computing, and AI.
Hut 8 CEO Asher Genoot has stated that he is examining every business line to identify and eliminate inefficiencies and reduce costs. The company recently energized a third of its 63 MW Salt Creek site in Culberson County, TX, relocating miners from its Kearney, NE and Granbury, TX sites. Genoot believes that this move will provide control over their miner fleet and operating costs.
Despite the need for more efficiency upgrades in Hut 8’s mining fleet, Palmer noted that its holdings of 9,102 BTC give it a solid liquidity cushion and the ability to capture upside during bitcoin price rallies. He concluded that the company’s diversified model and relative strength in bitcoin’s price should support its operating performance until new equipment is purchased and deployed.
