Hut 8
Vertically integrated energy-to-compute: acquires/develops power capacity, then monetizes it across three segments — Power (generation & managed services), Digital Infrastructure (colocation), and Compute (ASIC Bitcoin self-mining via ~80%-owned American Bitcoin, plus AI cloud via Highrise AI). Shifting revenue mix from BTC self-mining toward long-term contracted AI data center leases.
Earnings, margins, COGS & capex
FY2025 revenue rose 45% to $235.1M but the company posted a $248.0M net loss ($226.1M attributable to Hut 8) and negative $135.4M adjusted EBITDA, both swung by $220.0M of primarily unrealized digital-asset losses (vs $509.3M of gains in 2024, when it earned $331.4M net income). Q1 2026 accelerated: revenue $71.0M (+226% YoY) at ~64% gross margin, but a $295.7M crypto mark-down drove a $253.1M total net loss ($219.8M attributable; $(1.98)/sh) and $(250.5)M adjusted EBITDA. The story is a balance-sheet/backlog transition — GAAP earnings are dominated by Bitcoin fair-value swings while the durable value shift is ~$16.8B of contracted AI data center backlog across two campuses and 1,020 MW of energy under management.
Income statement — where each revenue dollar goes
% of revenueOf every $1 of revenue, ~36¢ is cost of goods and ~63¢ operating expense, leaving ~1¢ of operating profit (~248¢ net).
Revenue trend
Margins
Expanding YoY as higher-value compute/AI mix grows
Negative; swung from +$555.7M FY2024 on crypto marks
Loss-making through the AI build-out; dominated by BTC fair-value volatility
Weighed by digital-asset write-downs and depreciation
COGS structure
Primary Compute-segment costs are electricity/power for ASIC mining and data center opex; Power segment carries generation fuel and O&M. Fair-value remeasurement of Bitcoin holdings runs through the income statement (non-cash) and is the dominant swing factor — not a cash cost of goods.
Capex
Elevated, growth-stage: Vega (205 MW BTC-mine, energized 2025-06-30, Texas Panhandle) plus AI build-out at River Bend (Louisiana, 245 MW, targeting first data hall Q2 2027) and Beacon Point (Nueces County, Texas, 352 MW). River Bend construction is funded by $3.25B of investment-grade senior secured notes (6.192%, due 2042, BBB- by S&P/Fitch, issued via Hut 8 DC LLC), a 16.5-year amortizing structure matched to the 15-year lease; ~$4.25B of IG financing was arranged for Beacon Point. Corporate liquidity is topped up via the $1.0B ATM and $400M credit facilities. The original River Bend framework of up to 85% loan-to-cost via JPMorgan (lead) and Goldman Sachs was executed as the IG notes offering.
Latest earnings
Mixed — headline revenue beat with +226% growth and ~64% gross margin, but a large GAAP net loss ($253.1M total; $219.8M attributable, $(1.98)/sh) from a $295.7M digital-asset markdown; stock rallied ~32% on the revenue/backlog narrative (Beacon Point $9.8B lease disclosed same day)
No specific revenue/EPS guidance issued; management framed 2026 as an execution year — advancing River Bend toward first-data-hall delivery in Q2 2027 and converting the pipeline
- Q1 2026 revenue
- $71.0M (+226% YoY)
- Q1 2026 net loss (total)
- $(253.1)M
- Q1 2026 net loss attributable
- $(219.8)M / $(1.98) per share
- Q1 2026 adjusted EBITDA
- $(250.5)M
- Digital-asset loss (Q1 2026)
- $(295.7)M
- Bitcoin held
- 16,331 BTC (~$1.11B carrying value)
- Cash
- $160.0M (~$1.3B combined cash+BTC liquidity)
- Energy under management
- 1,020 MW
- Contracted AI capacity
- 597 MW across two campuses (~$16.8B base-term value, May 2026)
Growth drivers
- Contracted AI/HPC data center leases — ~$16.8B aggregate base-term contract value on 597 MW across two campuses (as of May 2026): the 245 MW / 15-year / $7.0B Fluidstack lease at River Bend (Google-backstopped, ~$9B total guarantee including pass-throughs; end-tenant Anthropic) and the 352 MW / $9.8B Beacon Point lease with an undisclosed high-investment-grade tenant (NVIDIA-spec build)
- Energy capacity under management growth (815 MW FY2024 to 1,020 MW FY2025) plus an 8,500 MW development pipeline (330 MW under construction, 1,230 MW under development, 1,755 MW under exclusivity, 5,185 MW under diligence)
- American Bitcoin (ABTC) — ~80%-owned, Nasdaq-listed pure-play Bitcoin accumulation vehicle providing scalable self-mining and BTC upside
- Highrise AI cloud (bare-metal GPU) and colocation revenue as the mix shifts from crypto to AI infrastructure
- Anthropic + Fluidstack partnership to accelerate U.S. hyperscale AI infrastructure deployment
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-02-25. The audited primary-source spine — not financial advice.
Revenue — annual (GAAP)
Margins & balance sheet — FY’25
Bull & bear
Hut 8 is repricing from a volatile Bitcoin miner into a contracted AI-infrastructure landlord sitting on scarce power, with a ~$16.8B two-campus backlog (one Google-backstopped, both investment-grade-tenant) and a BTC treasury as optionality on top.
- ~$16.8B aggregate base-term AI contract value on 597 MW — a 15-year Fluidstack lease that Google financially backstops (~$9B total guarantee) at River Bend plus a $9.8B Beacon Point lease with an investment-grade tenant — long-duration, IG-adjacent cash flows once the campuses deliver
- Power is the true bottleneck in AI; 1,020 MW under management + 8,500 MW pipeline is a durable, hard-to-replicate moat
- Sum-of-parts: AI infrastructure + 205 MW Vega + BTC treasury (16,331 BTC ~$1.1B) + ~80% of listed ABTC gives multiple independent value legs and self-funding optionality
- Q1 2026 revenue +226% at ~64% gross margin shows the operating engine works beneath the crypto-mark noise; a $3.25B BBB- IG notes close validates the build financially
- A re-rate from crypto-miner to data center/infrastructure multiple as recurring lease revenue ramps could expand the valuation base substantially
The value is almost entirely future and financed with debt and dilution; today the P&L is a Bitcoin-price derivative posting nine-figure losses, and the AI lease cash flows don't arrive until 2027+.
- FY2025 net loss $248.0M and $(135.4)M adjusted EBITDA — the company loses money at the operating level once BTC gains reverse, and Q1 2026 added a $295.7M markdown ($(250.5)M adjusted EBITDA)
- ~$11.5B market cap on $235M trailing revenue (~49x sales) prices in near-flawless execution of leases that don't generate revenue until Q2 2027 at the earliest
- Heavy reliance on project debt (a $3.25B River Bend IG notes tranche plus ~$4.25B arranged for Beacon Point), $1.0B ATM dilution, and BTC/ABTC monetization — a Bitcoin drawdown or credit tightening pressures financing simultaneously
- AI-pivot sentiment is fragile — 2026 saw sharp sell-offs across IREN/RIOT/MARA on 'AI pivot headwinds'; a single lease slippage or interconnect delay could de-rate the stock
- Governance/headline risk from the Trump-family ABTC structure (ABTC fell ~34% intraday to ~50% on its Dec 2025 lockup expiry) and large single-tenant concentration at each of the two campuses
What it is worth
Sum-of-parts / contracted-backlog and asset-based — not an earnings multiple, since the company is loss-making with negative adjusted EBITDA and GAAP results dominated by Bitcoin fair-value swings. Value legs: (1) NPV of contracted AI leases (~$16.8B base-term on 597 MW across River Bend and Beacon Point, the former Google-backstopped), (2) BTC treasury (16,331 BTC ~$1.11B) + ~80% of listed ABTC, (3) 1,020 MW managed + 8,500 MW pipeline of optioned power.
A Bitcoin drawdown or AI-lease slippage compresses both the crypto and infrastructure legs, financing tightens against the leveraged project-debt model, and HUT de-rates back toward a crypto-miner multiple — well below the ~$11.5B current cap.
Backlog largely intact but revenue back-end-loaded to 2027+; stock stays range-bound and sentiment-driven (~$90-140) as it digests dilution, capex, and BTC volatility around ~$11-14B market cap.
Successful River Bend + Beacon Point delivery and pipeline conversion at hyperscaler economics re-rates HUT to a data center/infrastructure multiple on multi-billion recurring lease revenue; BTC treasury and ABTC add upside. Supports a valuation well above the current ~$11.5B and a retest/breach of the $140.80 52-week high.
~$11.5B market cap (2026-07-06) on $235M FY2025 revenue is ~49x trailing sales — the market is capitalizing the AI backlog and power position, not current earnings. Re-rating hinges on converting pipeline to signed leases and delivering River Bend (first data hall Q2 2027) and Beacon Point on schedule; the crypto/BTC legs add both upside optionality and downside volatility.
SWOT
Strengths
- Large, financeable AI backlog — ~$16.8B aggregate base-term contract value across two campuses, with a Google-backstopped anchor lease and investment-grade tenants that de-risk counterparty credit
- 1,020 MW energy under management plus an 8,500 MW development pipeline — scarce, permitted power is the binding constraint in AI infrastructure and Hut 8 holds a deep position
- Diversified three-segment model (Power, Digital Infrastructure, Compute) plus BTC treasury and ~80% of listed ABTC — multiple monetization paths for the same power
- Access to investment-grade project finance ($3.25B BBB- River Bend notes; ~$4.25B arranged for Beacon Point; JPMorgan/Goldman structuring; Coinbase/Two Prime facilities; $1.0B ATM) to fund capex
Weaknesses
- GAAP results dominated by Bitcoin fair-value swings — $248.0M FY2025 net loss and $(135.4)M adjusted EBITDA make earnings-based valuation impossible and mask operating progress
- Deeply negative free cash flow during a multi-year, capital-intensive build-out; reliant on debt and equity issuance (dilution risk via the $1.0B ATM)
- AI revenue is still largely contracted/future — River Bend first data hall not until Q2 2027, so near-term revenue leans on volatile BTC self-mining
- Concentration and governance optics around the Trump-family-linked ABTC subsidiary add headline/political risk; ABTC's own stock is highly volatile
Opportunities
- Convert the 8,500 MW pipeline into contracted AI leases at hyperscaler-grade economics; Fluidstack expansion rights of up to ~1,000 additional MW at River Bend
- Ride secular AI compute demand — hyperscalers are power-constrained and paying premium long-duration rents for shovel-ready megawatts
- Re-rating toward a data center/infrastructure multiple (vs a crypto-miner multiple) as recurring lease revenue scales
- Monetize BTC treasury and ABTC equity to fund growth without over-diluting HUT holders
Threats
- Bitcoin price crashes hit BTC carrying value, ABTC economics, and self-mining margins simultaneously
- AI capex cycle cooling / hyperscaler lease pullbacks — 2026 saw miner-AI stocks (IREN, RIOT, MARA) sell off on 'AI pivot headwinds'
- Execution/construction risk — power interconnect delays, cost overruns, or slippage past the Q2 2027 River Bend first-data-hall target
- Rising rates or tighter credit raise the ~8.5% WACC and threaten the leveraged project-finance model
- Intense competition for power sites and AI leases from better-capitalized or further-along peers (IREN, Cipher, Core Scientific, TeraWulf)
Moats, dependencies & bottlenecks
Moats
1,020 MW under management + 8,500 MW pipeline; grid interconnect and permitting take years to replicate — the binding constraint for AI compute
Strong but early High once delivered ~$16.8B base-term value across two campuses; 15-year Fluidstack lease with Google backstop plus a $9.8B IG-tenant Beacon Point lease create sticky, switching-cost-heavy tenant relationships
$3.25B BBB- River Bend notes + JPMorgan/Goldman structuring + Coinbase/Two Prime facilities + $1.0B ATM lower cost of build vs smaller peers
Owning generation, colocation, and compute lets the same megawatt be re-monetized across BTC mining or AI leasing depending on returns
Dependencies
Market / revenue + balance sheet Drives self-mining margins, BTC treasury carrying value, and ABTC economics; the dominant swing factor in GAAP results
Customer concentration $7.0B / 245 MW anchor lease; Google financial backstop (~$9B total) mitigates credit risk but single-tenant concentration at River Bend remains; Beacon Point adds a second large single tenant (undisclosed IG)
$3.25B River Bend IG notes plus ~$4.25B arranged for Beacon Point and ATM dilution; rate/credit tightening threatens the capex plan
Infrastructure / regulatory Delivery timelines (River Bend first data hall Q2 2027) hinge on interconnect and construction execution
Supply chain / demand Highrise AI cloud and lease conversions depend on GPU availability and sustained AI capex
Advantages
- One of the deepest power positions among AI-pivoting miners (1,020 MW managed, 8,500 MW pipeline)
- Google-backstopped River Bend lease plus a second IG-tenant Beacon Point lease give rare credit quality to a miner-turned-landlord backlog
- Optionality stack: BTC treasury + ~80% of listed ABTC + colocation + AI cloud on a shared power base
- Investment-grade financing relationships ($3.25B BBB- notes) that smaller peers lack
Weaknesses
- Loss-making with negative adjusted EBITDA once BTC gains reverse
- Revenue still crypto-weighted and volatile until AI leases deliver in 2027+
- Dilution and leverage risk from the $1.0B ATM + multi-billion project debt
- Headline/governance sensitivity around the Trump-linked ABTC subsidiary and its own stock volatility
Bottlenecks
- Power interconnect and permitting timelines gate how fast the 8,500 MW pipeline converts to revenue
- Capital intensity — build-out consumes cash years before AI leases pay out (River Bend from Q2 2027, Beacon Point thereafter)
- Bitcoin-price volatility injects large non-cash swings that obscure operating performance and can trigger financing stress
- Construction/execution capacity to deliver multiple hundred-MW facilities on schedule and on budget
Top signals & trends
Top signals
Operating engine scaling beneath the crypto-mark noise
Earnings remain a Bitcoin-price derivative
Backlog materially larger than trailing revenue base; Beacon Point $9.8B lease disclosed 2026-05-06
High volatility; sentiment-driven re-rating not yet earnings-anchored (52-week high $140.80)
IG close validates the build but signals leverage/dilution reliance
Subsidiary volatility spills back to parent
Trends
High / positive · Sector-wide 2026 theme; miners with power win premium long-duration AI leases (Hut 8, IREN, Cipher, Core Scientific, TeraWulf)
High / positive · AI compute demand outstripping available permitted megawatts — favors incumbents holding grid capacity
Medium / negative · 2026 saw sharp sell-offs on 'AI pivot headwinds' — lease cancellations or capex cooling would hit valuations
High / mixed · BTC swings drive both treasury value and self-mining economics; a drawdown pressures financing and earnings together
Medium / positive · Investment-grade structures (Hut 8's $3.25B BBB- notes; JPMorgan/Goldman-led) let miners fund AI build-outs at scale
Ecosystem & competitor graph
Suppliers feed the company; customers pull from it. Line thickness shows the strength of each tie (supply-chain dependency, customer earnings contribution). Hover to isolate a tie.
ASIC mining rigs for Compute/self-mining (e.g. Vega colocation) and hardware supply
AI accelerators / GPUs for Highrise AI and the NVIDIA-spec Beacon Point build
Electric utilities & grid operators (ERCOT/Texas, Louisiana) Power supply and interconnect — the gating input
Lead-left underwriter/structurer on River Bend project financing
Co-lead on River Bend project financing / IG notes
Anchor AI tenant at River Bend — 245 MW / 15-year / $7.0B lease, Google-backstopped, serving Anthropic
Undisclosed high-investment-grade tenant (Beacon Point) 352 MW / $9.8B triple-net lease in Nueces County, Texas (NVIDIA-spec build)
End-tenant behind the Fluidstack River Bend capacity; partner to accelerate U.S. hyperscale AI infrastructure
Bare-metal GPU AI cloud customers
Best-positioned AI-pivot miner; Microsoft partnership provides revenue visibility and model validation
Largely exited BTC production; ~$9.3B contracted backlog anchored by a 300 MW / $5.5B AWS deal (delivering by late 2026) plus a Google-backstopped Fluidstack agreement — closest strategic mirror to Hut 8
Aggressively converting crypto sites to AI data center operations; large power footprint
Pure-play AI-infra pitch without ongoing crypto complexity; locked >$12.8B in AI/HPC contracts (Fluidstack + Core42) in 2026
Big power position (Texas), converting sites to HPC but earlier in AI leasing than Hut 8
Remains primarily a Bitcoin miner; less advanced AI pivot — competes more on BTC self-mining/treasury
Large power/mining position, minimal AI leasing to date; competes for power sites
Purpose-built AI/HPC data center developer (CoreWeave tenant); direct competitor for AI leases and power