Hut 8 (HUT) Slashes 13%, Mirrors Subsidiary Fall

HUT +2.04% BTC-USD +2.18%

We recently published 10 Stocks Deep in the Red. Hut 8 Corp. (NASDAQ:HUT) is one of the worst performers on Tuesday.

Hut 8 fell for a second day on Tuesday, shedding 13.52 percent to close at $37.68 apiece as investors took path from American Bitcoin’s 51-percent intra-day drop.

American Bitcoin is a majority-owned subsidiary by Hut 8 Corp. (NASDAQ:HUT), which plunged following announcements that the locked-up shares of the company became eligible for trading.

Additionally, presidential son Eric Trump—who also co-founded American Bitcoin—said in a social media post on the same day that the sell-off was due to investors exercising their options to “cash in on their profits for the first time, which is why we will see volatility.”

Investors, however, turned cautious, with the sentiment spilling over to Hut 8 Corp. (NASDAQ:HUT).

“I’m holding all my @ABTC shares—I’m 100 percent committed to leading the industry,” Trump added.

As of writing, the prices of Bitcoin were up by 1.31 percent to the $92,000 level, but remained down by 14.20 percent in the past 30 trading days.

While we acknowledge the potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.