HUT is true to its commitment to HODL such that it has the 2nd largest Bitcoin reserves behind MARA and is expected to exceed MARA's in 3-4 quarters.The hidden cost of HUT's HODL strategy is shareholder dilution which saw HUT issue 74.4% new shares in 2021 and diluted shareholders' claim on assets and upside potential by 40%.Despite HUT's severe dilution, HUT's Bitcoin reserve in excess of total liabilities is still worth more than its current market, offering investors a very compelling investment value proposition.Our gripe with HUT is its above sector average business costs.We maintain our stance that HUT is just like holding Bitcoin, but only better.IntroductionIn our previous coverage on Hut 8 Mining (HUT), despite taking a liking to the company, we explicitly stated that we'll hold off our investment in it as we expect a large decline in HUT due to economic fundamentals. We also stated that HUT is fairly priced back then assuming Bitcoin stays above $50,000 and HUT achieves its targeted 6 EH/s mining capacity by mid of 2022. We did not expect Bitcoin to hold above $50,000 due to our thesis on its halving cycle.Our concerns were proven valid as the economy is nearing the official definition of a recession, Bitcoin broke below $20,000, and HUT failed to achieve its targeted 6 EH/s by mid of 2022. As a result, HUT suffered a 75% decline since our last coverage at the beginning of 2022.With HUT trading at only a $260m market...
