, 2022-12-19 17:30:00,
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Hut 8 Mining (TSX:HUT) is a Toronto-based cryptocurrency mining company. Today, I want to determine whether it is worth snatching up this stock in the facing of turbulence in the broader crypto space. Let’s jump in.
What is behind crypto’s terrible, horrible, no good, very bad year?
Bitcoin, the world’s top cryptocurrency by market cap, has seen its valuation steadily chipped away, as 2022 has pressed forward. Now, as we approach the final weeks of the year, it is trading close to its 52-week low. Meanwhile, Bitcoin has been throttled in the face of rising interest rates and heightened economic uncertainty.
The price fluctuations for Bitcoin, Ethereum, and other top digital currencies have been overshadowed by the collapse of FTX, a former cryptocurrency exchange. FTX had entered Chapter 11 bankruptcy proceedings in early November. Binance, the largest crypto exchange in the world, had signed a letter of intent to acquire the firm. However, it went on to withdraw the offer the next day after reports emerged that FTX had mishandled customer funds. Last week, FTX founder Sam Bankman-Fried was arrested in the Bahamas for an avalanche of financial offences.
This space will need to win back the trust of regular investors in 2023 and beyond.
How has Hut 8 Mining performed in the face of this turbulence?
Shares of Hut 8 Mining have plunged 88% in 2022 as of early afternoon trading on December 19. Meanwhile, the stock is down 21% over the past…
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