Benchmark "Hut8 stock decline is a short-term phenomenon… price target $78 maintained"

Hut8, a virtual asset (cryptocurrency) mining company, has seen its stock decline since the announcement of 3rd-quarter results. However, this decline has been described as a short-term phenomenon.

On the 5th (local time), according to crypto outlet The Block, Benchmark maintained a 'buy recommendation' and a $78 price target for Hut8.

The previous day, Hut8 reported 3rd-quarter revenue of $83.5 million, up 91% year-over-year. However, the stock fell 13% intraday after a tenant for the Louisiana River Bend project was not confirmed.

Mark Palmer, an analyst at Benchmark, said, "Investors were expecting short-term announcements, but that is not something management promised," adding, "The sell-off is a short-term and unfair reaction. Hut8 has laid the foundation to generate high value over the long term."

Asher Genut, Hut8's chief executive officer (CEO), said in the 3rd-quarter results announcement that development of the West Feliciana Parish (West Feliciana Parish), a major 300-megawatt (MW) facility scheduled to begin operations in late 2026, is progressing smoothly. Palmer explained, "The company is looking to secure tenants that will optimize long-term economics rather than pursue short-term profits."

Meanwhile, as of 11:51 p.m. (Korea time) that day, Hut8 was trading on Nasdaq at $50.15, up 4.24% from the previous day.