Shares of Bitcoin miner Hut 8 (HUT) jumped nearly 18% in pre-market trading due to rumors circulating on social media platform X about a potential partnership with Meta. The claim? Hut 8 is building a data center in Louisiana, possibly in collaboration with Meta Platforms (META). However, both companies have yet to confirm any partnership.
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Bitcoin Mining & AI May Be a Natural Partnership in the Making
Hut 8’s stock climbed to nearly $28, up from $25.61 on Wednesday, fueled by the speculation. According to Reuters, the company is constructing a $12 billion data center in West Feliciana Parish, Louisiana. Meta recently revealed plans for a similar project, a $10 billion AI data center in the state. While no official announcement has been made, the overlap in tech requirements between Bitcoin mining and AI operations has many wondering if the two tech giants are working together.
As the lines between Bitcoin mining and AI operations blur, more companies like Hut 8 are branching out. The move toward AI computing is gaining traction as a way to boost revenue. Hut 8 holds 9,122 BTC, worth about $921 million, making it one of the top Bitcoin holders in the U.S. market.
Is HUT Stock a Good Buy?
Whether this rumored partnership comes to fruition or not, analysts remain bullish on HUT stock. On TipRanks, HUT is deemed a Strong Buy based on a unanimous 7 Buy ratings. The average HUT price target of $32.34 implies an upside potential of 21.2% from current levels.
