According to CoinDesk, Bitcoin miner Hut 8 saw its shares rise on Wednesday after broker H.C. Wainwright upgraded the stock two steps from sell to buy. The broker also increased its price target for the shares from $7.50 to $13.50. This upgrade led to a 5.6% increase in the stock price, which was recently trading 3.7% higher at around $11.36.

The report from H.C. Wainwright highlighted several reasons for the positive shift in sentiment. One key factor is that Hut 8 now benefits from competitive blended average electricity costs following the restructuring of its newest facility in Texas. Additionally, the company has the capital and infrastructure to purchase and deploy the latest-generation mining equipment at an opportune time in the cycle.

The broker also noted the growing demand for energy and infrastructure from artificial intelligence (AI) companies. The likelihood of Hut 8 signing a high-performance computing (HPC) or AI customer has increased, especially after a $150 million investment by Coatue in June. Hut 8 is actively engaged in talks with potential customers for large-scale HPC and AI projects.

Despite reporting weaker-than-expected second-quarter revenue due to lower self-mining income, the overall outlook for Hut 8 remains positive. The company's strategic positioning and recent investments are expected to drive future growth and profitability.