Hut 8 Mining stock down on a big hit to Q1 revenue: buy the dip?

Hut 8 Mining reports a 64% year-on-year hit to revenue in its Q1.
Craig-Hallum analyst sees downside in “HUT” to C$2.0 a share.
Hut 8 Mining stock is now down nearly 30% versus its YTD high.

Hut 8 Mining Corp is trading down on Thursday after reporting a massive year-on-year decline in its first-quarter revenue.

Notable figures in Hut 8 Mining Q1 report

Earned C$0.47 a share versus C$0.15 a share loss expected
Revenue tanked a more than expected 64% to C$19 million
Mined 475 bitcoin – down roughly 50% versus a year ago
Increased its installed hashrate in the quarter to 2.6 EH/s

At its Ontario facility, Hut 8 Mining had to switch off roughly 8,000 machines because of a dispute with Validus Power Corp. In the press release, CEO Jamie Leverton also said:

In early 2023, we experienced a confluence of events: electrical issues at our Drumheller site caused equipment failures, fluctuating energy prices and increased network difficulty.

Versus its year-to-date high, Hut 8 Mining stock is down nearly 30% at writing.

Is Hut 8 Mining stock worth buying?

So far, only 1,000 of those machines in its Ontario facility are back online and its Alberta mine is running at just 15% of its installed hashrate.

Hut 8 Mining is currently in the process of merging with USBTC or U.S. Bitcoin Corp. According to the Chief Executive:

We have made progress on key regulatory files required to complete the transaction. We also reached an all-time operational high of 1.72 EH/s at our Medicine Hat facility.

Despite underperformance, it may not be the best of ideas to take a position in this Canadian company today considering a Craig-Hallum analyst reiterated his “hold” rating on Hut 8 Mining stock this week. His C$2.0 price target suggests another 10% downside from here.