The new Hut 8 (HUT) subsidiary, American Bitcoin Corp., a partnership between the Trump’s mining company and the Trump family, could be lost, allowing the company to focus at the hosting center, the broker Clear Street said in a report Monday.
The broker noted that the new unit will be included in the Bitcoin Miner’s financials, but the “businesses can be separated, allowing the hut to focus on the high-Margin center income hosting income.”
Hut 8 is expected to secure more power and expand the data center business that has a business -dating, said the report, and the “potential to secure a hyperscaler” is a major catalyst for the company.
Eric Trump and Donald Trump Jr. combined their firm, American Data Center, along with American BitcoinA new mining adventure, taking a 20% stake to the company. The remaining 80% is the owner of Hut 8, which contributes nearly 61,000 machines of mining to the new creature.
Core Scientific’s (Corz) Deal In Cloud Computing Firm Coreweave led to a sector re-rating last year, as investors warmed up the idea of Bitcoin miners pivoting artificial intelligence and high computing performance (HPC).
HUT 8 is expected to enter a stage of large growth, starting in the second half of the year, “energization of the Bitmain Colocation Agreement,” the report added.
Clear Street has a Hut 8 purchase rating that shares with a $ 23 price target. Shares are over 4% higher than $ 12.10 in early trading.
Investment Bank KBW noted that Eric Trump would be the chief strategy officer of American Bitcoin, which could be a huge positive given to his “industry commitment as well as his obvious relationship.”
KBW has an outperform rating in stock with a price target of $ 30.
