Hut 8 Corp (NASDAQ:HUT) shares are tumbling Wednesday, weighed down by an insider stock sale disclosed in a filing Tuesday. Here’s what you need to know.
- Hut 8 shares are retreating from recent levels. What’s weighing on HUT shares?
Insider Sale Filing Shows 1.5 Million Shares Tied to a Prepaid Forward Agreement
A Form 144 filed Tuesday night showed Hut 8 officer and director Michael Ho planned to sell 1.5 million shares of common stock. The sale runs through J.P. Morgan Securities and carries an aggregate market value of roughly $139 million.
The filing flagged an important detail. Those shares fall under a prepaid forward contract linking Ho to Springtide Creek Ltd, a company he fully owns, along with a firm tied to the broker managing the trade. Ho picked up the shares originally through Hut 8’s merger with US Data Mining Group. He reported no other sales over the prior three months.
Poolin Will Redo the Auction That Led to Hut 8’s $180 Million Bid
Separately, bankrupt crypto miner Poolin Technology plans to rerun the sale process for its Texas data center properties. That original process is what generated Hut 8’s $180 million bid, Bloomberg reported. Poolin agreed to start over after several rival bidders pushed back, citing issues with how the first round was handled.
Hut 8’s Chart Shows a Break Below Key Moving Averages
Turning to the charts, Hut 8 has slipped beneath both its 20-day and 50-day moving averages. Those two levels had repeatedly caught the stock on the way down over the summer, so losing them both at once marks a real shift.
That kind of break typically points to sellers taking control in the short run. From here, traders will likely watch the 200-day moving average as the next real test. That longer-term line has been climbing steadily over the past year, even as the stock has fallen hard from its June peak.
If that 200-day level also gives way, Hut 8 could be headed toward retesting price levels the stock hasn’t seen since earlier in the summer. On the other hand, holding that average would signal the stock’s longer-term uptrend is still intact despite the recent slide.
HUT Shares Are Dipping
HUT Price Action: Hut 8 shares were down 6.34% at $86.97 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Vinnikava Viktoryia/Shutterstock.com
Recent Comments