Bitcoin miner Hut 8 is reportedly considering a strategic pivot that could catapult it into the big leagues of data center hosting, potentially by acquiring a hyperscaler. A Clear Street report suggests this move could follow the spin-off of American Bitcoin Corp., its new venture with the Trump family.
While American Bitcoin Corp., a partnership with Eric and Donald Trump Jr.’s American Data Centers, will be initially folded into Hut 8’s financials, analysts at Clear Street point to a possible separation. This would allow Hut 8 to sharpen its focus on the more profitable data center hosting sector.
The Trump scions secured a 20% stake in American Bitcoin, merging their data center firm with Hut 8’s new mining operation. Hut 8 maintains an 80% ownership, contributing a substantial fleet of nearly 61,000 mining machines to the endeavor.
The potential for Hut 8 to “secure a hyperscaler” is highlighted as a key growth driver. This strategic shift echoes Core Scientific’s successful move into AI and high-performance computing (HPC) via a deal with CoreWeave, which previously sparked investor enthusiasm for bitcoin miners diversifying into AI.
Fueling further optimism, Hut 8 is anticipated to enter a significant growth phase in the latter half of this year. This acceleration is expected to be “driven by the energization of the BITMAIN Colocation agreement,” according to the Clear Street report.
Clear Street’s confidence in Hut 8 is reflected in their “buy” rating on the company’s stock, accompanied by a price target of $23.