Hut 8 (HUT) Drops Hard on Profit-Taking

We recently published 10 Big Names Investors Are Dumping. Hut 8 Corp. (NASDAQ:HUT) is one of the companies that heavily bled in Thursday’s trading.

Shares of Hut 8 Corp. retreated by 7.87 percent on Thursday to close at $34.88 apiece as investors resorted to profit-taking following last week’s gains that saw the company propel to a new all-time high.

In other developments, Hut 8 Corp.’s (NASDAQ:HUT) newly listed subsidiary, American Bitcoin (NASDAQ:ABTC), announced its switch to a new auditor, KPMG LLC, effective September 19. The latter replaced RBSM LLP, which served as its independent auditor since last year.

Hut 8 Corp. (NASDAQ:HUT) owns the majority of American Bitcoin and was established to focus on building America’s Bitcoin infrastructure platform through the acquisition of Bitcoins.

Last week, Hut 8 Corp. (NASDAQ:HUT) earned a price target upgrade of $60 from investment firm Roth Capital, representing a 72 percent upside from its latest closing price. It also maintained a “buy” recommendation for its stock.

According to Roth, the upgrade was based on optimism for its high-performance computing (HPC) and AI infrastructure, as well as its affiliate, American Bitcoin’s progress towards hitting an operating hash rate of 25 EH/s.

Roth Capital said the new business structure was “one of the more well thought of” in the sector, enabling American Bitcoin to pursue its own crypto strategy while Hut 8 Corp. (NASDAQ:HUT) focuses on providing power and managed services.

Roth Capital believed that any announcement of a signed lease agreement for one of its campuses would bolster stock ratings in the future.

While we acknowledge the potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.