Hut 8 Corp. Plunges Another 12% Today. When Will the Bleeding Stop For This Bitcoin Miner?

Core Viewpoint - Hut 8 is experiencing significant selling pressure, with shares down 12% in a single trading session, primarily driven by the decline in Bitcoin prices and investor sentiment [1][2]. Group 1: Bitcoin Price Impact - The price of Bitcoin is currently around $88,000, down approximately 30% from its recent peak, contributing to investor unease regarding Hut 8 [2]. - Bitcoin's daily decline of around 1.4% is not unusual, but the overall market sentiment remains negative, impacting Hut 8's stock performance [4]. Group 2: Company Holdings and Valuation - Hut 8 holds 10,669 Bitcoin on its balance sheet, with a market valuation suggesting investors are willing to pay roughly three times the value of this Bitcoin for exposure to the company's mining potential [5]. - The company's majority stake in American Bitcoin Trust (ABTC) adds significant leverage, but the decline in ABTC stock, which is down 4.6%, negatively affects Hut 8's investor sentiment [6][7]. Group 3: Strategic Challenges - Hut 8's strategy to transition towards a more open-source model has not yielded the expected results, as recent Bitcoin price movements have not supported its valuation [7][8]. - The leveraged Bitcoin mining model is underperforming in the current market environment, leading some investors to reconsider their positions in the company [7].