Hut 8’s share price has risen for three consecutive months and is approaching its highest level this year as the company prepares to release its financial results.
Summary
- Hut 8’s share price has risen for three consecutive months.
- The company has formed a cup and handle pattern.
- It will release financial results later on Tuesday.
Hut 8, one of the main companies in the Bitcoin sector (btc) mining and an upcoming artificial intelligence data center industry, rose to $57, an increase of more than 1,285% from its lowest level in 2023. This increase has raised its market capitalization to more than $6.2 billion.
Hut 8 has done well despite the current Bitcoin price decline due to its pivot into the data center industry. He recently signed a major deal with Anthropic, the creator of Claude.
This agreement will allow you to build the river bend campus, which will have a capacity of 2,295 megawatts of infrastructure in three sections. The deal will be worth billions of dollars in the coming years.
The next key catalyst for Hut 8’s share price will be its upcoming earnings, which are due out on Tuesday.
Data collected by Yahoo Finance shows that revenue will be $95 million, up 200% from the same period in 2024. Its annual revenue will exceed $241 million, up 48% year-on-year.
Its agreement with Anthropic and Google will help it increase its revenue this year to more than $425 million, an increase of 76% year over year. Analysts also expect earnings per share to be a loss of 15 cents from a profit of 1.55 in the same period in 2024.
Wall Street analysts are largely bullish on the company. Some of the most bullish are HC Wainwright, Roth Mkm and KBW, who have set a target of $80, $80 and $75 million, respectively. The average target among analysts is $64, 12% higher than the current level.
Hut 8 Stock Technical Analysis
The monthly period chart shows that the Hut 8 share price has seen a strong rebound in recent years. It has jumped from a low of $3.65 in 2023 to the current level.
The stock has risen for the past three consecutive months and is approaching its highest level this year at $66. It has also moved above the 50-month moving average.
A closer look shows that it has formed a cup and handle pattern whose top side is at $82.70, its highest level on record. This measure will represent an increase of 40% compared to the current level.
The caveat, however, is that this pattern has formed on the monthly chart, meaning its outcome may take months or years to complete.
