Hut 8 Corp HUT

5-1 reverse split and potential price targets

[wxytrader]

How does the reverse split impare the ability of the stock to reach the same highs as before the split. 

Apparently, the all time high of HUT was $15.90 on November 08, 2021 during the bitcoin run of 2021. 

Without a reverse split,  if I had 25,000 shares at the current price ($1.63) and the price returned to the previous highs then I would profit 25,000 * (15.90 - 1.63) = 14.27 = $356,750

But after the reverse split, I would only profit $71,350 because I would only have 5000 shares so my multiple has substantially been decreased....unless the stock price should also be x 5 so if bitcoin were to return to its 2021 highs, then HUT would reach its previous high x 5 so $79?

[wxytrader]

Correction: 1-5 reverse split

[wxytrader]

Basically what I am wondering is: Without a reverse split I would have: 25000 shares @ 1.63 =   25,000 * (15.90 - 1.63) = 14.27 = $356,750 After the reverse split I would have: 5000 shares @ 8.15 So if the price continues to track as before the reverse split, then if bitcoin returns to prevous highs, then Hut could reach 15.90 again, but I would only profit 5000 * (15.90 - 8.15) = 7

[Hotdoger]

Yes, the assumption is that the stock would be  5 x more valuable. It's not rocket science. Initially it may drop as per the negative opinion of reverse splits but the the split takes it out of the penny stock realm which is good thing in the long term.