Hut 8 (HUT) AI Stock Analysis

• Market Cap: C$7.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 35.6
• Beta (1Y): 2.85
• Revenue Growth: 7.46%
• EPS Growth: -4.30%
• Country: CA
• Employees: 222
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.61
• Shares Outstanding: 105,527,930
• 10 Day Avg. Volume: 1,878,836
• 30 Day Avg. Volume: 1,750,027
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$89.80
• Price Target Upside: 70.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$54.00 ▲(2.58% Upside)

The overall stock score is primarily driven by the positive earnings call, which highlighted significant revenue growth and strategic expansions. However, financial performance challenges, particularly in cash management and profitability, weigh down the score. Technical analysis and valuation provide moderate support but do not significantly alter the overall assessment.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business expansion, enhancing long-term financial stability.

Strategic Expansion

The expansion in energy capacity positions Hut 8 to capitalize on growing computational demand, supporting future revenue growth and market leadership.

Strong Balance Sheet

A substantial Bitcoin reserve enhances liquidity and financial flexibility, reducing reliance on external financing and supporting strategic initiatives.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can strain operations and limit investment capacity, potentially hindering long-term growth and stability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which can impact the company's ability to sustain growth and compete effectively.

Increased Operational Costs

Rising operational costs can erode margins and profitability, necessitating efficiency improvements to maintain competitive positioning.

Hut 8 Business Overview & Revenue Model

Company Description

Hut 8 Mining Corp (HUT) is a cryptocurrency and blockchain technology company based in Canada, primarily engaged in the business of cryptocurrency mining. The company operates large-scale mining operations, focusing on Bitcoin (BTC) and other cryptocurrencies. Hut 8 also offers data hosting services and provides solutions for digital asset management, catering to a range of clients in the blockchain sector. With a commitment to sustainability, Hut 8 is known for utilizing energy-efficient technologies in its mining operations.

How the Company Makes Money

Hut 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 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

• Technical Analysis Sentiment: Negative
• Last Price: 52.64
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HUT, the sentiment is Negative. The current price of 52.64 is below the 20-day moving average (MA) of 57.18, below the 50-day MA of 59.90, and above the 200-day MA of 34.13, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HUT.

Hut 8 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLXY	70 Outperform	$17.25B	-28.01	-2.77%	―	―	-121.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUT	56 Neutral	C$7.16B	35.55	18.75%	―	7.46%	-4.30%
NDA	56 Neutral	C$78.80M	―	―	―	-20.75%	-84.00%
HIVE	49 Neutral	C$1.05B	―	-7.18%	―	60.71%	-52.29%
BITF	46 Neutral	$2.60B	―	-17.06%	―	51.69%	28.00%
BIGG	41 Neutral	C$26.26M	―	-63.28%	―	36.80%	9.34%

Hut 8 Corporate Events

Hut 8 Corp. Reports Strong Q3 Earnings Growth

The recent earnings call for Hut 8 Corp. painted a picture of robust financial and operational performance, underscored by significant revenue growth and strategic expansions. Despite facing challenges such as a decline in the Power segment revenue and increased costs, the overall sentiment was positive, with a clear focus on execution and strategic growth.

Hut 8 Corp. Elects Board of Directors at 2025 Annual Meeting

Hut 8 Corp. announced the election of its board of directors at the 2025 Annual Meeting of Stockholders, with all eight nominees elected to serve until the next annual meeting. This voting outcome supports the company’s strategic direction in the energy infrastructure sector, potentially impacting its operational focus and stakeholder confidence positively.

The most recent analyst rating on (TSE:HUT) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Hut 8 stock, see the TSE:HUT Stock Forecast page.

Hut 8 Expands U.S. Operations with New Energy Infrastructure Sites

Hut 8 Corp. announced plans to develop four new sites in the U.S., adding 1,530 MW of capacity to its platform, which will exceed 2.5 gigawatts upon commercialization. This expansion aims to double the scale of Hut 8’s platform and diversify its geographic presence, positioning the company to capture opportunities in rapidly growing energy markets and support a range of advanced technologies.

The most recent analyst rating on (TSE:HUT) stock is a Buy with a C$36.00 price target. To see the full list of analyst forecasts on Hut 8 stock, see the TSE:HUT Stock Forecast page.