Hut 8 Plunges 13.86% Amid Sector-Wide Tech Disruption – What’s Fueling the Selloff?

Summary
• Hut 8 (HUT) tumbles 13.86% intraday, trading at $35.585 after opening at $40.78
• Intraday range spans $35.10–$41.00, with turnover surging to 6.73% of float
• AppZen’s AI Agent Studio disrupts outsourcing, while crypto-linked ETFs like BLOX (-6.91%) and MNRS (-9.23%) mirror sector weakness

Today’s selloff in Hut 8 reflects a seismic shift in the data processing sector as AI automation threatens traditional outsourcing models. With AppZen’s AI Agent Studio enabling enterprises to replace BPO labor with autonomous systems, Hut 8’s mining-as-a-service model faces existential pressure. The stock’s 13.86% drop underscores investor anxiety over margin compression and competitive displacement.
AI Automation Disrupts Outsourcing Sector as AppZen Unveils AI Agent Studio
AppZen’s AI Agent Studio, launched this week, is redefining finance operations by replacing human labor with autonomous AI systems. Enterprises are now automating 80% of high-volume workflows, reducing teams by 50–80% and shifting $290B in outsourcing budgets to AI solutions. Hut 8’s business model—reliant on cloud mining contracts—now faces direct competition from AI-driven cost-cutting. The sector’s pivot to agentic AI, accelerated by Gartner’s 2026 adoption forecast, has triggered a liquidity crunch in traditional outsourcing stocks like HUT.

Outsourced Services Sector Faces AI-Driven Reconfiguration – AppZen Leads the Charge
AppZen’s 40%+ client efficiency gains contrast sharply with Hut 8’s 53.86x P/E ratio, highlighting the sector’s valuation divergence. While HUT struggles with crypto’s cyclical volatility, AppZen’s AI-native platform is capturing market share in $1.7T AI-driven finance automation. The sector’s 30D moving average ($42.39) suggests HUT is underperforming peers, as AI adoption accelerates and BPO demand contracts.

Bearish Playbook: Leveraged ETFs and Put Options for AI-Driven Selloff
• 200-day average: $25.58 (well below current price)
• RSI: 60.48 (neutral but bearish bias)
• MACD: 0.47 (bullish) vs. -0.05 signal line (bearish crossover imminent)
• Bollinger Bands: Price at $35.585 (near lower band at $33.26)

With HUT trading 13.86% below open and 28.5% below 52W high ($57.29), short-term bearish momentum is entrenched. The Grayscale Bitcoin Miners ETF (MNRS) and Amplify Blockchain Technology ETF (BLOK), down 9.23% and 4.14% respectively, validate sector weakness. Key support levels at $37.58–$38.01 (30D) and $12.41–$13.30 (200D) suggest further downside risk.

Top Put Option 1: HUT20251219P35
• Strike: $35 | Expiry: 12/19 | IV: 151.62% | Delta: -0.427 | Theta: -0.1017 | Gamma: 0.0621 | Turnover: 47,582
• IV: High volatility premium | Delta: Moderate sensitivity | Gamma: Strong price responsiveness | Turnover: High liquidity
• This put offers 180% price change potential with a 16.10% leverage ratio, ideal for a 5% downside scenario (targeting $33.81 payoff).

Top Put Option 2: HUT20251219P35.5
• Strike: $35.5 | Expiry: 12/19 | IV: 154.24% | Delta: -0.458 | Theta: -0.0971 | Gamma: 0.0618 | Turnover: 34,523
• IV: Elevated volatility | Delta: Balanced exposure | Gamma: Strong gamma for directional moves | Turnover: Solid liquidity
• With a 14.17% leverage ratio and 172.83% price change potential, this contract excels in a 5% drop scenario (targeting $33.71 payoff).

Action: Aggressive bears should prioritize HUT20251219P35 for its high gamma and liquidity. If $35.50 support breaks, HUT20251219P35.5 offers amplified downside capture.

Backtest Hut 8 Stock Performance
The iShares Core S&P U.S. ETF (HUT) has demonstrated resilience following a significant intraday plunge of at least -14% from 2022 to the present. In the aftermath of such events, HUT has shown a generally positive short-to-medium-term performance, indicating that it tends to recover and even surpass its previous levels.

Act Now: Short-Term Volatility Looms as AI Automation Reshapes Outsourcing Landscape
Hut 8’s 13.86% intraday plunge reflects a sector-wide revaluation as AI automation replaces BPO labor. With AppZen’s AI Agent Studio reducing finance teams by 80% and Gartner forecasting 40% of enterprise software to embed agentic AI by 2026, HUT’s mining-as-a-service model faces existential risk. Investors should monitor the Grayscale Bitcoin Miners ETF (MNRS) and Amplify Blockchain Technology ETF (BLOK) for sector sentiment. IBM, the sector leader, fell 0.19% today, signaling broader tech sector caution. Watch for $35.50 breakdown or regulatory reaction to AI adoption trends.