Hut 8 Corp HUT shares were down Thursday morning, despite the company reporting upbeat third-quarter results and Bitcoin prices surging past $90,000.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

Needham On Hut 8

Analyst John Todaro reiterated a Buy while lifting the price target from $21 to $32.

Hut 8 reported third-quarter revenues of $44 million, beating consensus of $35 million, with losses of 13 cents per share, better than the consensus of 29 cents per share, Todaro said in a note. The company is moving from being "one of the highest cost Bitcoin producers to one of the lowest," he added.

The recent efficiency gains and power cost reduction by Hut 8 bode well for its EBITDA growth through 2025, the analyst stated. Management indicated a pipeline of over 5 gigawatts (GW) "with 1.5 GW under exclusivity as of October-end, among the highest in our coverage," he further wrote.

Check out other analyst stock ratings.

Benchmark On Hut 8

Analyst Mark Palmer maintained a Buy rating while raising the price target to $32.

Hut 8's third-quarter report indicates the company's efforts to "build out and commercialize its next-generation digital infrastructure platform have accelerated during the past few months," Palmer said. Hut 8 has "strong growth prospects" in both AI compute and Bitcoin mining, which are "continuing to strengthen," he added.

Management noted the company's development pipeline of more than 5 GW of energy capacity as of Oct. 31, with "three sites with more than 430MW of combined capacity that would be well suited for large-scale AI data center projects," the analyst stated.

"While HUT is well positioned to benefit from the anticipated surge in demand for AI data center capacity, it is also poised to gain from AI's growth through Highrise AI, its GPU-as-a-Service subsidiary that launched during 3Q24 with more than 1,000 of Nvidia’s H100 GPUs," Palmer further wrote.

HUT Price Action: Shares of Hut 8 had declined by 2.06% to $24.25 at the time of publication on Thursday.

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