Hut 8 Mining (TSX: HUT) is a Toronto-based cryptocurrency mining company that operates in North America. This crypto stock has been a strong target during positive stretches for the digital currency space.
Today, I want to discuss how much you would have today if you had invested $2,000 in Hut 8 Mining stock in early July 2020. Moreover, I want to discuss whether this top crypto and blockchain stock is worth buying in the early summer of 2023. Let’s jump in.
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How has Hut 8 Mining performed over the past year?
Shares of Hut 8 Mining have surged 82% month over month as of close on Thursday, July 6. This crypto stock is now up 323% so far in 2023. Its shares have soared 131% year over year. Investors who want to see more of its recent and past performance can play with the interactive price chart below.
Investors in cryptocurrencies have been on a rollercoaster ride in the early 2020s
The price of Bitcoin, the top digital currency by market capitalization, suffered the sharpest losses it had seen in years in late 2022. Bitcoin’s value dipped below the US$16,000 mark late last November. This punished investors who elected to purchase Bitcoin after its huge spike in late 2020. Indeed, the COVID-19 pandemic generated the most explosive bull market in the cryptocurrency’s history.
Canada made history when it became the first country to introduce a Bitcoin-focused exchange-traded fund (ETF) back in February 2021. Purpose Bitcoin ETF (TSX: BTCC.B) is down from its inception price, but the fund has surged 77% so far in 2023.
BlackRock, the largest asset manager on the planet, filed with the U.S. Securities and Exchange Commission (SEC) for approval of a spot Bitcoin ETF. Bitcoin has already gone mainstream, at least when it comes to its exposure among the general populace. However, this move would mean that a huge swathe of retail investors would now be able to invest in the top digital currency. That is good news for the cryptocurrency space.
Has Hut 8 Mining rewarded the faithful?
Hut 8 Mining has been a beneficiary of this potentially big step forward for the cryptocurrency market. This company released its first-quarter fiscal 2023 earnings on May 11. It saw a huge reduction in digital assets mined to $475 million compared to $942 million in the first quarter of fiscal 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This company reported an adjusted EBITDA loss of $3.69 million compared to adjusted EBITDA of $27.1 million in the previous year.
On July 7, 2020, Hut 8 Mining stock closed at $1.11 per share. At this point, we could have snatched up 1,801 shares of this crypto stock for a purchase price of $1,999.11. Shares of Hut 8 Mining closed at $4.79 per share on Thursday, July 6. That means our original 1,801 shares would be worth $8,626.79. This stock has soared over 330% since its close on July 7, 2020.
Is this crypto stock worth buying today?
Bitcoin and the crypto market at large are in a great position to catch fire after receiving this big public boost from BlackRock. Meanwhile, Hut 8 Mining is still on track for strong earnings growth going forward. This crypto stock may still have a lot of room to run in 2023.
