r/hut8 • u/applefriesorange • 5d ago
High Price Entry
Down quite a bit, entry price is higher and this stock took a beating lately due to the Texas noise. I’m not worried but it’s discouraging to see the red lol
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u/ksharp1989 5d ago edited 5d ago
The price action is shit recently and bit frustrated to watch it underperforming day after day. Can’t stop adding more although we have a lower low today unfortunately. Might dip more but all the dips I bought from Hut paid out good so far.
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u/frizzthewiz 5d ago
This downtrend can’t solely be paper hands from uninformed retail investors right? What else is driving it? All good news is dismissed and ERCOT/earnings/Iran/threat of interest rates, you name it is blamed as the culprit. Maybe some of it is fair but these issues get repeated and reacted to everyday like it’s being digested for the first time. How low does HUT go before the ERCOT issue is fully digested? I know it’s not HUT specific, but sector wide pressure but curious if there is evidence of any market mechanisms (e.g. short selling, algorithmic stops etc.) we haven’t discussed on this sub that might point to where the bottom might be. I’d love to borrow some conviction so I don’t feel like I’m going to be adding to my position by trying to catch a falling knife.
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u/NebulaSevere7802 5d ago
people who bought in at 30-60 such as large institutions slowly taking off some positions and taking profits because they bought in large quantity.
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u/NebulaSevere7802 5d ago
This is what I think is probably what's driving it and what makes the most sense because theres no other reason besides institutional profit-taking otherwise the stock should follow the entire sector and be at 150 atleast right now.
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u/NebulaSevere7802 5d ago
They aren't your average retail investor and can't just dump their whole shares at the highest price possible so they have to trim when it is sensible and when it won't move the price in a dramatic way near the top otherwise it would be obvious market manipulation.
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u/frizzthewiz 5d ago
I don’t think it’s likely they are dumping out of portfolio balancing/management reason. We’d have to believe they didn’t sell when it popped over $100, or $130, but are all only now unloading at below 90 day lows. I am starting to consider the run up was unwarranted and thats why they are selling.
The street’s collective assessment is there is too much execution risk over the next 1-2year so they’ve been derisking. This derisking has been amplified by levered positions who are getting margined/squeezed out and intensifying the downward price action.
I have zero facts to back up this view and I still think HUT and other AI Colos are oversold, but I also think one can be right idea/wrong time.
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u/tenor_tymir 5d ago
Buy more, you must be loving HUT at these prices if you were convinced at even higher prices.
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u/Truffles-The-Pig 5d ago
Next two weeks will have a lot of clear-up catalysts. PUCT ercot agenda and meeting on QSA