Hut 8 (HUT) Drops Hard on Profit-Taking

Core Insights - Hut 8 Corp. experienced a significant decline in share price, dropping 7.87% to close at $34.88 due to profit-taking after reaching an all-time high [1][3] - The company’s subsidiary, American Bitcoin, has switched auditors to KPMG LLC, which may impact its operational transparency and investor confidence [2] - Roth Capital upgraded Hut 8's price target to $60, indicating a 72% upside potential, driven by optimism in its high-performance computing and AI infrastructure [3][4] Company Developments - Hut 8 Corp. owns the majority of American Bitcoin, which aims to build a Bitcoin infrastructure platform [2] - The new business structure allows American Bitcoin to pursue its own crypto strategy while Hut 8 focuses on power and managed services [4] - Roth Capital believes that future announcements regarding lease agreements for Hut 8's campuses could positively influence stock ratings [4] Market Sentiment - The recent price target upgrade reflects a positive outlook on Hut 8's potential in the high-performance computing and AI sectors [3] - Despite the potential of Hut 8 as an investment, there is a belief that certain AI stocks may offer better returns with lower risk [5]