By Ketki Saxena
Investing.com – Canadian cryptocurrency mining company Hut 8 Mining Corp (TSX:HUT) set to report Q4 2021 earnings tomorrow, March 17, before the opening bell. The company specializes in industrial-scale bitcoin mining operations, and as of the end of February holds 6,115 bitcoin on its balance sheet.
Earnings per share are estimated at $0.21 on revenue of $63.485 M, compared to EPS $0.15 on revenue of $50.341 M in the last quarter, and EPS $0.09 on revenue of $12.986 M this time last year.
Hut8 Mining: Fair Price Target (NYSE:TGT), Financial Upside
Year to date, Hut8 has returned -38.2% total price return to shareholders and is currently trading at a P/E ratio of 15.8x. Hut8 does not offer a dividend to investors.
As of 2:10 p.m ET, Hut shares were trading at $6.38, up $0.24 (3.91%) so far today, and with a 52-week range between $3.91 - 20.61. InvestingPro models suggest a fair price target of $9.02, representing an upside potential of 41.4%.
What else to know before Hut8 earnings tomorrow
Hut8 plans to expand its operations through scalable cloud services similar to those offered by Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL). Hut8 also plans to provide infrastructure for Web3 and blockchain-based gaming. The company recently acquired Canada-based wireless connectivity to further these ambitions.
Hut has also recently filed to sell shares to raise capital, as part of a broader industry move by companies to shore up cash holdings and buoy up balance sheets. Crypto mining margins are being threatened by rising costs, Bitcoin volatility, and the Russia-Ukraine conflict. However, margins for major miners still remain at over a whopping 70%.
Even without selling stock, Hut Holds significantly more cash than debt on its balance sheet, with its latest twelve months net debt / total capital of -19.1%. This metric is particularly positive when compared to competitors Riot Blockchain and Marathon Digital holdings, which have twelve-month net debt/total capitals of -13.4% and 7.1% respectively.
All currencies CAD, unless noted otherwise.