Hut 8 Corp (NASDAQ:HUT) shares have been in focus with the Bitcoin halving event impacting miners.

Following the merger of "old HUT" with US Bitcoin Corporation (USBTC), which closed in November 2023, the prospects of the new entity have been buoyed by diversified revenue streams and initiatives to increase profitability, according to Benchmark.

The Hut 8 Analyst: Mark Palmer initiated coverage of Hut 8 with a Buy rating and price target of $12.

The Hut 8 Thesis: The discount at which the stock trades to its Bitcoin mining peers could shrink "as the company executes on its self-mining expansion plans," Palmer said in the initiation note.

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The management team is focusing on expanding the company's energy capacity, "as it has more than 1,100MW of energy development capacity under exclusivity that would enable ~63 EH/s of hash rate capacity using current generation mining rigs," the analyst wrote.

Meanwhile, management halted purchasing new mining rigs to boost the company's self-mining hash rate "given its expectation that more efficient 3 nanometer rigs will become available in the coming months, followed by even more efficient 2 nanometer rigs," he added.

Following the merger, management has focused on lowering the company's "cost of mining Bitcoin and its realized cost of energy" and increasing cash flows, Palmer further stated.

HUT Price Action: Shares of Hut 8 had risen by 9.56% to $8.83 at the time of publication on Monday.

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