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Hut 8 (TSE:HUT)
TSX:HUT
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Hut 8
(TSX:HUT)
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Rating:67Neutral
Price Target:
C$87.00
▲(2.64% Upside)
Score reflects a split profile: strong technical momentum and a very upbeat earnings call (rapid revenue/EBITDA improvement and expansion plans) are tempered by weak financial statement quality—especially cash burn and income statement instability—and only middling valuation support (P/E ~32, no dividend).
Positive Factors
Large Bitcoin reserves
A substantial BTC reserve (~13.7k coins, ~$1.6bn) provides durable liquidity optionality: it can fund capex or cover operating shortfalls without immediate equity issuance, smooth cash needs during miner revenue cycles, and materially strengthens balance sheet resilience over months.
Strategic long-term AI/data center partnerships
The Anthropic/Fluidstack partnership and multi-tranche deployment (initial 245 MW, optional expansion to 2,295 MW) represents a structural shift into hyperscale AI infrastructure with multi-year demand, long-term tenancy rights, and diversification beyond pure crypto mining, improving revenue visibility and asset utilization.
Large expansion and contracted capacity pipeline
A 1,530 MW expansion pipeline and expanded managed services (325 MW contracted with American Bitcoin) more than doubles platform scale potential, driving long-term operating leverage, stronger contractual revenue streams and the ability to capture scale economies in power procurement and equipment deployment over the next several quarters.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow is a durable risk for a capex- and power-intensive miner: it increases reliance on asset monetization, digital asset sales, or external financing to fund growth, raising execution and dilution risk while constraining ability to self-fund the expansion pipeline.
Income statement instability and accounting volatility
Negative gross margins and a TTM net loss indicate core profitability challenges; reported earnings are also materially affected by fair-value gains on digital assets (FASB accounting), making operating performance volatile and reducing the predictive value of GAAP profits for long-term cash generation.
Segment margin pressure from cost increases and revenue decline
A steep drop in Power segment revenue alongside a large rise in Compute segment costs compresses margins and highlights execution/scale-up inefficiencies. If higher unit costs persist while legacy contracts lapse, profitability and cash conversion could remain under pressure during growth phases.
Hut 8 (HUT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.03B
Dividend YieldN/A
Average Volume (3M)1.75M
Price to Earnings (P/E)34.0
Beta (1Y)3.32
Revenue Growth7.46%
EPS Growth-4.30%
CountryCA
Employees222
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.61
Shares Outstanding108,036,630
10 Day Avg. Volume1,878,836
30 Day Avg. Volume1,750,027
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.87
Price to Sales (P/S)4.18
P/FCF Ratio-8.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$92.67Price Target Upside9.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hut 8 Business Overview & Revenue Model
Company DescriptionHut 8 Mining Corp. operates as a cryptocurrency mining company in North America. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 51 BlockBoxes in Medicine Hat, Alberta. Hut 8 Mining Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.
How the Company Makes MoneyHut 8 generates revenue primarily through cryptocurrency mining, where it earns Bitcoin by solving complex mathematical problems and validating transactions on the blockchain. The company operates mining facilities equipped with high-performance hardware, allowing it to produce Bitcoin efficiently. Additionally, Hut 8 has revenue streams from hosting services, where it provides infrastructure for clients looking to mine cryptocurrencies or manage their digital assets. The company may also engage in buying and selling cryptocurrencies, which can contribute to revenue depending on market conditions. Strategic partnerships with energy providers and technology firms may enhance its operational efficiency and profitability.
Hut 8 Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial and operational performance with significant revenue growth and strategic expansions. However, there were challenges such as a decline in Power segment revenue and increased costs. Despite these, the overall outlook remains positive with a focus on execution and strategic growth.Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Hut 8 delivered revenue of $83.5 million in Q3 2025, up 91% year-over-year, primarily driven by the expansion of Bitcoin mining revenue through American Bitcoin.
Net Income and Adjusted EBITDA Surge
Net income was $50.6 million versus $0.9 million in the prior year period, and adjusted EBITDA was $109 million versus $5.6 million in the prior year period.
Expansion of Managed Services Agreement
Expanded managed services agreement with American Bitcoin to 325 megawatts of contracted capacity, the largest in Hut 8's history, providing greater earnings visibility.
Compute Segment Growth
Compute segment revenue increased more than fivefold year-over-year to $70 million, driven by Bitcoin mining revenue and GPU as-a-Service operations.
Strong Balance Sheet
Held 13,696 Bitcoin in reserve with a market value of approximately $1.6 billion, which enhances liquidity and reduces reliance on equity.
Negative Updates
Decline in Power Segment Revenue
Power segment revenue declined year-over-year from $26.2 million to $8.4 million, mainly due to the wind down of the managed services agreement with Ionic Digital.
Increased Costs in Compute Segment
Compute segment cost of revenue increased from $8.9 million to $22 million year-over-year, consistent with the significant expansion of operations.
Elimination of Intercompany Revenue
Revenue from agreements with American Bitcoin is eliminated in consolidation, impacting reported segment results for Power and Digital Infrastructure.
Company Guidance
During Hut 8's third-quarter 2025 earnings call, the company reported significant financial growth, highlighted by a 91% year-over-year increase in revenue to $83.5 million. This growth was primarily driven by Bitcoin mining revenue through their subsidiary, American Bitcoin, which contributed substantially to the Compute segment's top line. The company achieved a net income of $50.6 million compared to $0.9 million in the previous year and reported an adjusted EBITDA of $109 million, a significant increase from $5.6 million in the prior year. The results also included a $76.6 million gain on digital assets, reflecting the impact of FASB's fair value accounting guidance. Hut 8's strategic focus on integrating power, digital infrastructure, and compute assets has positioned them to capitalize on the surging computational demand, particularly in AI technologies. The company has introduced new performance metrics such as energy capacity under development to provide greater visibility into their pipeline. They are currently working on a 1,530-megawatt expansion across four U.S. locations, which is expected to more than double their platform's scale.Hut 8 Financial Statement Overview
Summary
Hut 8 faces significant financial challenges, particularly in profitability and cash management. The income statement shows negative gross profit margin and substantial net loss, while cash flow analysis reveals negative operating and free cash flows. The balance sheet is moderately stable with reasonable equity levels, but overall financial performance is volatile and inefficient.Income Statement
Hut 8's income statement shows significant challenges with profitability and revenue stability. The TTM data indicates a negative gross profit margin and a substantial net loss, highlighting operational inefficiencies. EBIT and EBITDA margins are skewed by high depreciation and amortization costs. Revenue growth has been inconsistent, reflecting volatility in financial performance.Balance Sheet
The balance sheet reflects a moderate financial structure with reasonable equity levels. The debt-to-equity ratio is manageable, suggesting a balanced approach to leveraging. However, the equity ratio indicates some room for improvement in asset utilization. While stockholders' equity is substantial, the overall asset base has seen fluctuations, which may impact financial stability.Cash Flow
Cash flow analysis reveals significant concerns, primarily due to negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in cash generation from core operations. The negative free cash flow growth rate further emphasizes the need for improved cash management strategies.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.80M | 671.72M | 81.80M | 150.68M | 173.77M | 40.71M |
| Gross Profit | -22.17M | 585.07M | 21.17M | -24.97M | 88.80M | -21.10M |
| EBITDA | 447.54M | 531.11M | 1.36M | 3.57M | 74.67M | -2.39M |
| Net Income | 206.26M | 331.88M | 16.45M | -242.81M | -40.94M | -19.31M |
Balance Sheet | ||||||
| Total Assets | 3.74B | 1.52B | 976.87M | 412.94M | 720.71M | 145.20M |
| Cash, Cash Equivalents and Short-Term Investments | 46.60M | 85.04M | 47.36M | 30.52M | 140.13M | 2.82M |
| Total Debt | 543.57M | 345.65M | 268.75M | 47.42M | 40.69M | 25.76M |
| Total Liabilities | 1.44B | 538.28M | 333.87M | 55.55M | 154.74M | 29.65M |
| Stockholders Equity | 2.01B | 976.67M | 643.00M | 357.39M | 565.97M | 115.55M |
Cash Flow | ||||||
| Free Cash Flow | -400.39M | -333.13M | -27.30M | -177.74M | -166.67M | -7.10M |
| Operating Cash Flow | -104.28M | -68.53M | -26.48M | -105.03M | -80.24M | -1.29M |
| Investing Cash Flow | -285.17M | -188.47M | 87.25M | -103.61M | -235.07M | -7.14M |
| Financing Cash Flow | 483.10M | 311.95M | -33.45M | 99.83M | 455.84M | 8.30M |
Hut 8 Technical Analysis
Positive
84.76
Price Trends
62.88
Positive
56.68
Positive
40.03
Positive
Market Momentum
6.29
Negative
68.51
Neutral
87.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HUT, the sentiment is Positive. The current price of 84.76 is above the 20-day moving average (MA) of 67.84, above the 50-day MA of 62.88, and above the 200-day MA of 40.03, indicating a bullish trend. The MACD of 6.29 indicates Negative momentum. The RSI at 68.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HUT.
Hut 8 Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$9.03B | 33.95 | 18.75% | ― | 7.46% | -4.30% | |
51 Neutral | C$13.53B | ― | -2.77% | ― | ― | -121.84% | |
49 Neutral | C$139.83M | 368.97 | 0.60% | ― | -21.21% | -84.82% | |
46 Neutral | C$2.21B | -12.74 | -17.06% | ― | 51.69% | 28.00% | |
45 Neutral | C$27.55M | -7.43 | -13.56% | ― | 40.83% | -123.25% | |
44 Neutral | C$55.68M | -5.79 | -10.10% | ― | 39.64% | -70.96% |
* Financial Sector Average
TSE:HUT
Hut 8
84.76
50.53
147.62%
TSE:NDA
Neptune Digital Assets
1.07
0.09
9.18%
TSE:BITF
Bitfarms
4.21
1.94
85.46%
TSE:GLXY
Galaxy Digital
35.41
8.81
33.12%
TSE:DMGI
DMG Blockchain Solutions
0.30
-0.04
-11.76%
TSE:CBIT
Cathedra Bitcoin Inc
0.95
-0.85
-47.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.