The new subsidiary of Hut 8 (HUT), American Bitcoin Corp., an association between the mining company and the Trump family, could be expelled, allowing the company to focus on the accommodation of the data centers, said Broker Clear Street in a report on Monday.
The corridor said that the new unit will be included in the finance of the Bitcoin miner, but “companies could separate, allowing HUT to focus on the revenue of accommodation of high margin data centers.”
HUT 8 is expected to ensure more power and expand its data centers housing business, according to the report, and the “potential to ensure a hyperscaler” is a key catalyst for the company.
Eric Trump and Donald Trump Jr. are merging their firm, US data centers, with American Bitcoin, a new mining company, having a 20% participation in the company. The remaining 80% will be owned by HUT 8, which contributes with almost 61,000 mining machines to the new entity.
The treatment of Core Scientific (Corz) with the Coreweave cloud computing firm led to a re-healing of the sector last year, since investors were heated with the idea that Bitcoin miners turned to artificial intelligence and high performance computing (HPC).
It is projected that Hut 8 enters a phase of considerable growth, from the second half of the year, “driven by the energization of the Bitmain placement agreement,” the report added.
Clear Street has a purchase rating in HUT 8 shares with an objective price of $ 23. The shares were more than 4% higher than $ 12.10 in early negotiation.
The KBW investment bank said Eric Trump will serve as American Bitcoin strategy director, which could be a great positive given his “commitment to the industry and his obvious relationships.”
KBW has a higher performance rating in the share with an objective price of $ 30.
