Hut 8 Corp. (NASDAQ: HUT) shares are are trading lower Monday potenafter the company announced it is spinning off its Bitcoin mining operations into a new entity, American Bitcoin, in partnership with Eric Trump.
Hut 8 Corp. has launched American Bitcoin Corp., a new subsidiary focused on industrial-scale Bitcoin mining and reserve accumulation. The venture follows Hut 8's transfer of its ASIC miners for a majority stake in a project backed by Eric Trump and Donald Trump Jr. The newly branded company aims to become the most efficient pure-play Bitcoin miner globally.
The cryptocurrency market is crashing, leading to top blockchain stocks seeing dips in value. These 5 blockchain stocks are trading at new 50-day lows.
Rosenblatt analyst Chris Brendler initiated coverage of Bitcoin stocks on Friday, citing a premium likely for the stocks due to their entry into the high-performance computing (HPC) business.
The Bitcoin miner said it benefited from a steep drop in energy costs, with its average cost per megawatt-hour falling 30% from the previous year to $31.63 in Q4.
Stocks fell broadly on Monday to start the month of March with all three major indices red in midday trading. Investors digested a decline in February's ISM Manufacturing PMI data which fell to 50.3%, down from 50.9% in January.
Stocks recovered on Friday, with all three major indexes in the green, as the tech sector bounced back from Thursday's losses with NVIDIA Corp. (NASDAQ:NVDA) up 1.37% and Tesla, Inc. (NASDAQ:TSLA)
Bitcoin, which had been trading in a tight range in recent weeks, fell as low as $86,873 late Monday, significantly below its all-time high of $109,000 last month.
