It’s been a real up-and-down sort of season for Bitcoin stock Hut 8 Mining (TSE:HUT) (NASDAQ:HUT). It’s been seen in a position of prominence, ringing the bell at the Nasdaq exchange, and it’s also had its integrity publicly questioned. Investors, meanwhile, aren’t exactly happy about the latest developments, sending shares down modestly in Monday afternoon’s trading.
The latest issue for Hut 8 Mining is new allegations of a “pump and dump” scheme in progress. For those not familiar with the term, it basically means to talk up a stock beyond all rationality to get people to buy in, and once they do, sell currently-held shares at a massive profit. Meanwhile, the actual use of the term “pump and dump” came from J Capital Research, who also declared Hut 8 as “unprofitable” and “over-levered.”
That, in turn, led Schall Law, a shareholder rights litigation firm, to start an investigation to see if Hut 8 either offered up misleading statements or otherwise withheld information that would have impacted investors’ decisions.
Not Taking This Lying Down
This is potentially bad news for Hut 8. However, Hut 8 is going on the defensive by offering up a statement that seems to be about as good as it can be for the company. Hut 8 noted that it’s seen the J Capital Research short report and plans to review it extensively. It also took the chance to remind investors that it has a strong balance sheet and is looking forward to future growth, especially given how rapidly Bitcoin (BTC-USD) has been on the rise as of late.
Is Hut 8 Mining a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HUT stock based on two Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 31.05% loss in its share price over the past year, the average HUT price target of C$19.58 per share implies 116.35% upside potential.
