Hut 8 is a cryptocurrency mining company. As I explained in a recent column on Dogecoin (CCC:USD-DOGE), I believe that the opposition of banks and governments to “cryptos” is likely to eventually hurt them. Therefore, I’m bearish on the outlook of most cryptocurrency companies.
Hut 8’s 2020 top line was meaningfully higher than the other two OTC stocks on this list, coming in at $40.7 million. But that was about 50% lower than the company’s 2019 revenue of $82 million. And alarmingly, last year, Hut 8’s gross profit was negative, strongly indicating that it will have difficulty becoming profitable if the new-found momentum of cryptocurrencies fades, which I think is quite likely.
With a market capitalization of around $800 million and a trailing price-sales ratio of 20, the shares have a long way to fall if things turn south for the sector and the company.
