Hut 8 Mining Firm May Consider Acquisition of a Hyperscaler, Says Report
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Hut 8 Mining Firm May Consider Acquisition of a Hyperscaler, Says Report

A report suggests that Hut 8 might consider acquiring a hyperscaler as part of a strategic shift towards data center hosting.

What to know:

  • Hut 8 may spin out its subsidiary, American Bitcoin, to prioritize data center hosting, as stated by broker Clear Street.
  • The broker has issued a buy rating on Hut 8 shares with a price target of $23.

Hut 8’s new subsidiary, American Bitcoin Corp., formed through a partnership with the Trump family, could be separated to focus solely on high-margin data center hosting revenue.

Clear Street added that Hut 8 aims to expand its data center business, highlighting the potential upsides from acquiring a hyperscaler as a significant driver for future growth.

Eric Trump and Donald Trump Jr. are integrating their firm, American Data Centers, with American Bitcoin, acquiring a 20% stake in the venture, with Hut 8 retaining 80% ownership and contributing nearly 61,000 mining machines to the new entity.

As of early trading, Hut 8 shares were up over 4% to $12.10, reflecting investor optimism surrounding the company’s strategic initiatives.

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