On January 27, Hut 8 Mining Corp. (HUT) stock made a comeback in the after-hours following its descent to a low of $5.10 in regular trading. No official news seems to be responsible for the recovery of the stock.
HUT stock closed the regular session at $5.12, suffering a huge loss of 11.11%. The stock saw a reversal in the after-hours as it gained 7.42% at $5.50.
What is happening with HUT?
While the stock had already been in a downtrend, it hit the low of $5.10 on Thursday. The stock fell down to such a low after nearly six months. HUT closed the session just above the low at $5.12. Given that there is no official announcement or recent SEC filing, the brush down might have caused the stock to rebound. Hitting such a low might have presented a good buying opportunity for some investors as the stock picked up after-hours.
2021 and 2022 Comparison
So far, 2022 has proved very dull for the stock as it has lost 34.78% year to date. While HUT gained a good 29.62% last year, it has been losing for the past three months. The reason for this downfall is the ongoing uncertainties in the crypto market over rising inflation and talks of its high energy consumption. 2021 saw a huge upsurge in the crypto market as most of the big names hit all-time-highs on crypto being the new big. But the hype could not last long as many started revolting against it due to its high energy demand. Moreover, the Covid-19 pandemic and high inflation rates also played a role in the downfall and are still doing so.
HUT’s Recent Developments
On January 20, the company announced a definitive agreement with TeraGo Inc. As per the agreement, HUT will acquire the cloud and colocation data center from TeraGo.
Furthermore, the purchase will comprise five data centers throughout Canada from Toronto to Vancouver. As part of the acquisition, the company will acquire customers, employees, and a diverse product offering from TeraGo.
Further, HUT will pay a consideration of C$30 million to TeraGo and the transaction is expected to close in Q1 of 2022.
On January 11, the company announced joining the Business Renewables Center Canada (BRC Canada). BRC Canada works with experts to speed up renewable energy uptake in Canada.
On November 11, HUT reported a diluted net income of $0.15/share on revenue of $50.3 million in Q3 of 2021. Comparatively, the company had a diluted net loss of $0.01/share on revenue of $5.75 million in the year-ago quarter.
