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Hut 8 Mining

TSX:HUT
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HUT
TSX
CA$62M
Market Cap
  1. Home
  2. CA
  3. Software
Company description

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada. The last earnings update was 145 days ago. More info.


Add to Portfolio Compare Print
  • Hut 8 Mining has significant price volatility in the past 3 months.
HUT Share Price and Events
7 Day Returns
-1.4%
TSX:HUT
2.5%
CA IT
11.7%
CA Market
1 Year Returns
-33.7%
TSX:HUT
-24.1%
CA IT
-26%
CA Market
HUT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hut 8 Mining (HUT) -1.4% -38.9% -35.5% -33.7% - -
CA IT 2.5% -25.4% -34.8% -24.1% 9.1% 30%
CA Market 11.7% -21.9% -26.6% -26% -23.6% -17.8%
1 Year Return vs Industry and Market
  • HUT underperformed the IT industry which returned -24.1% over the past year.
  • HUT underperformed the Market in Canada which returned -26% over the past year.
Price Volatility
HUT
Industry
5yr Volatility vs Market

Value

 Is Hut 8 Mining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hut 8 Mining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hut 8 Mining.

TSX:HUT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:HUT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 26.5%) (42.38%))
1.12
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.12 * 5.44%)
7.53%

Discounted Cash Flow Calculation for TSX:HUT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hut 8 Mining is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:HUT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.53%)
2020 7.28 Est @ 2.86% 6.77
2021 7.46 Est @ 2.43% 6.45
2022 7.62 Est @ 2.13% 6.13
2023 7.76 Est @ 1.93% 5.81
2024 7.90 Est @ 1.78% 5.50
2025 8.04 Est @ 1.68% 5.20
2026 8.16 Est @ 1.61% 4.91
2027 8.29 Est @ 1.56% 4.64
2028 8.42 Est @ 1.52% 4.38
2029 8.54 Est @ 1.5% 4.13
Present value of next 10 years cash flows CA$53.00
TSX:HUT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$8.54 × (1 + 1.44%) ÷ (7.53% – 1.44%)
CA$142.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$142.25 ÷ (1 + 7.53%)10
CA$68.81
TSX:HUT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$53.00 + CA$68.81
CA$121.81
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$121.81 / 90.48
CA$1.35
TSX:HUT Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$1.35
Current discount Discount to share price of CA$0.69
= -1 x (CA$0.69 - CA$1.35) / CA$1.35
48.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hut 8 Mining is available for.
Intrinsic value
49%
Share price is CA$0.69 vs Future cash flow value of CA$1.35
Current Discount Checks
For Hut 8 Mining to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hut 8 Mining's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hut 8 Mining's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hut 8 Mining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hut 8 Mining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:HUT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$-1.69
TSX:HUT Share Price ** TSX (2020-03-30) in CAD CA$0.69
North America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 23.1x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hut 8 Mining.

TSX:HUT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:HUT Share Price ÷ EPS (both in CAD)

= 0.69 ÷ -1.69

-0.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hut 8 Mining is loss making, we can't compare its value to the North America IT industry average.
  • Hut 8 Mining is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Hut 8 Mining's expected growth come at a high price?
Raw Data
TSX:HUT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
North America IT Industry PEG Ratio Median Figure of 62 Publicly-Listed IT Companies 1.83x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hut 8 Mining, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hut 8 Mining's assets?
Raw Data
TSX:HUT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$0.73
TSX:HUT Share Price * TSX (2020-03-30) in CAD CA$0.69
Canada IT Industry PB Ratio Median Figure of 24 Publicly-Listed IT Companies 1.92x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 0.99x
TSX:HUT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:HUT Share Price ÷ Book Value per Share (both in CAD)

= 0.69 ÷ 0.73

0.95x

* Primary Listing of Hut 8 Mining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hut 8 Mining is good value based on assets compared to the CA IT industry average.
X
Value checks
We assess Hut 8 Mining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Hut 8 Mining has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hut 8 Mining expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hut 8 Mining has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.4%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hut 8 Mining expected to grow at an attractive rate?
  • Unable to compare Hut 8 Mining's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Hut 8 Mining's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare Hut 8 Mining's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:HUT Future Growth Rates Data Sources
Data Point Source Value (per year)
North America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
Canada IT Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:HUT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:HUT Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31
TSX:HUT Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 80 7 -91
2019-06-30 71 7 -100
2019-03-31 51 -10 -139
2018-12-31 49 -7 -137
2017-12-31 7 0 0
2017-09-30 0 0
2017-06-30 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Hut 8 Mining is high growth as no earnings estimate data is available.
  • Unable to determine if Hut 8 Mining is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:HUT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Hut 8 Mining Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HUT Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31
TSX:HUT Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 -1.69
2019-06-30 -1.83
2019-03-31 -2.48
2018-12-31 -2.43
2017-12-31 -0.05
2017-09-30 -0.04
2017-06-30 -0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hut 8 Mining will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Hut 8 Mining is trading at Hut 8 Mining'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Hut 8 Mining's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. Hut 8 Mining's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Hut 8 Mining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hut 8 Mining has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hut 8 Mining performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hut 8 Mining's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hut 8 Mining does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Hut 8 Mining's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hut 8 Mining's 1-year growth to the North America IT industry average as it is not currently profitable.
Earnings and Revenue History
Hut 8 Mining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hut 8 Mining Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HUT Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 80.13 -90.71 6.45
2019-06-30 71.03 -100.41 7.49
2019-03-31 50.55 -139.02 8.23
2018-12-31 49.44 -136.77 7.83
2017-12-31 6.74 -0.14 0.14
2017-09-30 -0.12 0.12
2017-06-30 -0.11 0.11
2016-06-30 -0.11 0.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Hut 8 Mining has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Hut 8 Mining has efficiently used its assets last year compared to the North America IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Hut 8 Mining improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hut 8 Mining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hut 8 Mining has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hut 8 Mining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hut 8 Mining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hut 8 Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hut 8 Mining's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hut 8 Mining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hut 8 Mining Company Filings, last reported 6 months ago.

TSX:HUT Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 66.01 26.46 3.18
2019-06-30 66.94 29.58 6.05
2019-03-31 32.58 31.04 3.13
2018-12-31 32.66 32.37 3.56
2017-12-31 0.01 0.00 0.26
2017-09-30 0.07 0.00 0.29
2017-06-30 0.07 0.00 0.29
2016-06-30 0.17 0.00 0.33
  • Hut 8 Mining's level of debt (40.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Hut 8 Mining's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Hut 8 Mining has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Hut 8 Mining has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.6% per year.
X
Financial health checks
We assess Hut 8 Mining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hut 8 Mining has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hut 8 Mining's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Hut 8 Mining dividends.
If you bought CA$2,000 of Hut 8 Mining shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Hut 8 Mining's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Hut 8 Mining's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:HUT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
North America IT Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:HUT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-03-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Hut 8 Mining has not reported any payouts.
  • Unable to verify if Hut 8 Mining's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Hut 8 Mining's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Hut 8 Mining has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hut 8 Mining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hut 8 Mining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hut 8 Mining has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hut 8 Mining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Kiguel
COMPENSATION CA$2,986,518
TENURE AS CEO 1.8 years
CEO Bio

Mr. Andrew Kiguel has been President, Chief Executive Officer and a Director of Hut 8 Mining Corp. since April 2, 2018. Mr. Kiguel joins Hut 8 from GMP Securities L.P., where he played an integral role for more than 18 years in the Real Estate and Retail Capital Markets groups. Mr. Kiguel served as Managing Director of Investment Banking at GMP Securities L.P. Mr. Kiguel served as Senior Vice President of GMP Securities L.P. a subsidiary of GMP Capital Trust. Mr. Kiguel served as Vice President of Investment Banking of GMP Securities L.P. He joined GMP in January 2000, and is an integral member of Toronto’s investment banking department having worked on numerous corporate financings and advisory transactions. Mr. Kiguel also worked on and presented several Valuations and Fairness Opinions for public companies. Prior to joining GMP, he served as credit analyst for a top tier U.S. investment bank in Canada where he managed a portfolio of loans and analyzed the viability of numerous corporate and investment banking transactions. Mr. Kiguel has extensive experience in providing investment banking services to numerous public and private entities, including raising equity and debt capital in excess of C$3 billion over the last five years. He has also worked in an advisory role on numerous marquee M&A transactions.

CEO Compensation
  • Insufficient data for Andrew to compare compensation growth.
  • Andrew's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Hut 8 Mining management team in years:

1.7
Average Tenure
  • The average tenure for the Hut 8 Mining management team is less than 2 years, this suggests a new team.
Management Team

Andrew Kiguel

TITLE
President
COMPENSATION
CA$3M
TENURE
1.8 yrs

Jimmy Vaiopoulos

TITLE
Chief Financial Officer
COMPENSATION
CA$165K
TENURE
1.7 yrs

Sean Clark

TITLE
COMPENSATION
CA$63K
TENURE
2 yrs

George Aizpurua

TITLE
VP of Communications

Etienne Snyman

TITLE
Head of Power
TENURE
1.7 yrs

Kyle Appleby

TITLE
Corporate Secretary
COMPENSATION
CA$48K
AGE
44
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Hut 8 Mining board of directors in years:

2
Average Tenure
71
Average Age
  • The average tenure for the Hut 8 Mining board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Tai

TITLE
Chairman
COMPENSATION
CA$42K
AGE
56
TENURE
2.2 yrs

Andrew Kiguel

TITLE
President
COMPENSATION
CA$3M
TENURE
1.8 yrs

Joe Flinn

TITLE
Independent Director
COMPENSATION
CA$97K
TENURE
1.6 yrs

Gerri Sinclair

TITLE
Independent Director
COMPENSATION
CA$249K
AGE
71
TENURE
2.2 yrs

Dennis Mills

TITLE
Independent Director
COMPENSATION
CA$249K
AGE
72
TENURE
2.2 yrs

Jeremy Sewell

TITLE
Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
24. Sep 19 Buy Andrew Kiguel Individual 24. Sep 19 24. Sep 19 25,000 CA$2.05 CA$51,217
X
Management checks
We assess Hut 8 Mining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hut 8 Mining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Hut 8 Mining Corp. operates as a cryptocurrency mining company in Canada. The company engages in industrial scale bitcoin mining operations. It also owns and operates nine Blockbox AC data centers. The company is headquartered in Toronto, Canada.

Details
Name: Hut 8 Mining Corp.
HUT
Exchange: TSX
Founded:
CA$62,428,658
90,476,317
Website: http://www.hut8mining.com
Address: Hut 8 Mining Corp.
130 King Street West,
Suite 1800,
Toronto,
Ontario, M5X 1E3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX HUT Common Shares The Toronto Stock Exchange CA CAD 06. Mar 2018
OTCPK HUTM.F Common Shares Pink Sheets LLC US USD 06. Mar 2018
DB 1YT Common Shares Deutsche Boerse AG DE EUR 06. Mar 2018
Number of employees
Current staff
Staff numbers
0
Hut 8 Mining employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 02:29
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2019/12/09
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.