American Bitcoin Corp., a new subsidiary of Hut 8 (HUT), can spin a partnership between mining companies and the Trump family, allowing the company to focus on hosting its data centers, Broker Clear Street said in a report Monday.
The broker said the new units will be included in Bitcoin Miner’s finances, but “companies can be separated and focused on the height of the margin data center where HUT hosts revenue.”
HUT 8 is expected to secure more power and expand its data center hosting business, the report states, saying that “possibility to ensure hyperscalar” is an important catalyst for the company.
Eric Trump and Donald Trump Jr. have integrated American data centers to acquire a new mining venture, American Bitcoin and a 20% stake in the company. The remaining 80% is owned by HUT 8, providing almost 61,000 mining machines for new entities.
Core Scientific (CORZ) brought a reassessment of the sector last year with its deal with cloud computing company CoreWeave.
HUT 8 is expected to enter a significant phase of growth, as it is “driven by the energy of the Bitmain Colocation Agreement” from the second half of the year, the report added.
Clear Street has a purchase rating of 8 Hut shares with a price target of $23. Stocks exceeded 4% at $12.10 in early trading.
Investment Bank KBW said Eric Trump will serve as Chief Strategy Officer for Bitcoin in America.
KBW has an outperform valuation of its stock with a price target of $30.
