Hut 8 (HUT) AI Stock Analysis

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Hut 8

(TSX:HUT)

Rating:56Neutral

Price Target:

C$28.00

▼(-9.03% Downside)

The overall stock score is driven by the positive earnings call, which highlights significant financial improvements and strategic advancements. However, financial performance remains a concern due to profitability and cash management issues. Technical analysis and valuation provide moderate support, but the lack of a dividend yield and neutral momentum limit upside potential.

Positive Factors

Financial Stability

HUT held $216.3M in cash and equivalents, 10,263 bitcoin valued at $1.2B, and $309.4M in debt, indicating sufficient capital to support operations and growth.

Revenue Growth

There is an expectation of robust revenue and EBITDA growth supported by new equipment, infrastructure, and contracts.

Strategic Expansion

HUT is transforming into a power-first digital infrastructure platform, with long-term growth visibility from Bitcoin hosting and HPC colocation.

Negative Factors

Earnings Performance

HUT missed top and bottom-line estimates in 2Q25, with total revenues reported at $41.3M, short of consensus estimates at $48.5M.

Financial Performance

HUT reported an adj. EBITDA miss driven by softer top-line as mining rig uptime came in below expectation, and higher G&A resulting from new growth hires.

Operational Challenges

Revenue was negatively impacted by the termination of an agreement with Ionic and delays in new bitcoin mining equipment moving through customs.

Hut 8 (HUT) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$3.14B

Dividend YieldN/A

Average Volume (3M)1.45M

Price to Earnings (P/E)16.1

Beta (1Y)2.37

Revenue Growth2.40%

EPS Growth27.15%

CountryCA

Employees222

SectorFinancial

Sector Strength70

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)1.62

Shares Outstanding105,527,930

10 Day Avg. Volume1,473,178

30 Day Avg. Volume1,453,006

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$36.63

Price Target Upside19.01% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

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 makes money primarily through the mining of cryptocurrencies, such as Bitcoin. The company generates revenue by solving complex mathematical problems that secure the Bitcoin network and, in return, earns block rewards and transaction fees in the form of newly minted Bitcoin. These mined Bitcoins can then be held as an asset or sold on the open market to generate cash flow. Additionally, Hut 8 may engage in strategic partnerships and investments that complement its mining activities, such as collaborating with technology providers to enhance mining efficiency or exploring opportunities in blockchain and digital asset innovation. The company's revenue is directly impacted by cryptocurrency market prices, mining difficulty, and operational efficiency.

Hut 8 Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: 8.23%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant improvements in revenue, net income, and adjusted EBITDA, driven by strategic investments and operational enhancements. The shift towards contracted assets has improved revenue predictability. However, there were declines in Power and Digital Infrastructure segment revenues due to terminated agreements, and the elimination of intercompany revenue impacts reported results. Overall, the sentiment is positive due to the substantial financial improvements and strategic advancements.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Hut 8 reported $41.3 million in revenue for Q2 2025, a 17% increase year-over-year, driven by infrastructure and ASIC fleet upgrades.

Significant Net Income Improvement

Net income for the quarter was $137.3 million, compared to a loss of $71.9 million in the prior year period.

High Adjusted EBITDA

Adjusted EBITDA was $221.2 million, compared to a loss of $57.5 million in the prior year period, reflecting significant financial improvement.

Shift to Contracted Assets

Nearly 90% of Hut 8's energy capacity was commercialized under agreements with terms of 1 year or longer, up from less than 30% at the end of Q2 2024.

American Bitcoin Operations

American Bitcoin commenced Bitcoin mining operations as a distinct commercial entity, contributing to Hut 8's Compute segment.

Successful Capital Raising

American Bitcoin completed an oversubscribed private placement, including participation from notable investors like the Winklevoss Brothers.

Negative Updates

Decline in Power Segment Revenue

Power segment revenue for the quarter was $5.5 million, down from $10.5 million in the prior year, due to the termination of the managed services agreement with Ionic Digital.

Decrease in Digital Infrastructure Revenue

Revenue from the Digital Infrastructure segment was $1.5 million, a decrease of $3.8 million year-over-year, driven by the termination of the ASIC colocation agreement with Ionic Digital.

Elimination of Intercompany Revenue

Revenue generated from American Bitcoin's agreements with Hut 8 is eliminated in consolidation, impacting reported segment results.

Company Guidance

During the Hut 8 Second Quarter 2025 Earnings Conference Call, the company reported a 17% increase in revenue year-over-year, reaching $41.3 million, largely driven by infrastructure and ASIC fleet upgrades. This enhancement resulted in a $16.4 million uplift in Bitcoin mining revenue. Net income attributable to Hut 8 soared to $137.3 million, recovering from a $71.9 million loss in the prior year, while adjusted EBITDA climbed to $221.2 million from a $57.5 million loss. The quarter saw a $217.6 million gain on digital assets compared to a previous year loss of $71.8 million. Additionally, the company highlighted significant progress in asset commercialization, with nearly 90% of its energy capacity under management commercialized under long-term agreements. The strategic development pipeline included approximately 10,800 megawatts under diligence and 3,100 megawatts under exclusivity, reflecting the firm’s ambition to enhance its infrastructure capabilities and expand its presence at the intersection of energy and technology.

Hut 8 Financial Statement Overview

Summary

Hut 8 faces significant financial challenges with a negative gross profit margin, substantial net loss, and cash burn issues. While the balance sheet shows reasonable equity levels, the income and cash flow statements indicate volatility and inefficiencies. Improvements in operational efficiency and cash management are critical.

Income Statement

Negative

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

Neutral

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

Negative

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	Dec 2024	Dec 2023	Jun 2023	Dec 2019	Dec 2018
Income Statement
Total Revenue	671.72M	81.80M	150.68M	81.99M	49.44M
Gross Profit	585.07M	21.17M	-24.97M	2.13M	-23.48M
EBITDA	531.11M	1.36M	3.57M	30.40M	-2.76M
Net Income	331.88M	16.45M	-242.81M	2.13M	-136.77M
Balance Sheet
Total Assets	1.52B	976.87M	412.94M	71.24M	82.90M
Cash, Cash Equivalents and Short-Term Investments	85.04M	47.36M	30.52M	2.95M	3.56M
Total Debt	345.65M	268.75M	47.42M	26.04M	32.37M
Total Liabilities	538.28M	333.87M	55.55M	28.54M	50.24M
Stockholders Equity	976.67M	643.00M	357.39M	42.70M	32.66M
Cash Flow
Free Cash Flow	-333.13M	-27.30M	-177.74M	5.27M	-91.14M
Operating Cash Flow	-68.53M	-26.48M	-105.03M	14.51M	-6.77M
Investing Cash Flow	-188.47M	87.25M	-103.61M	-9.73M	-90.16M
Financing Cash Flow	311.95M	-33.45M	99.83M	-5.39M	77.24M

Hut 8 Technical Analysis

Technical Analysis Sentiment

Positive

Last Price30.78

Price Trends

50DMA

26.97

Positive

100DMA

22.98

Positive

200DMA

26.68

Positive

Market Momentum

MACD

0.49

Negative

RSI

61.25

Neutral

STOCH

79.98

Neutral

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 30.78 is above the 20-day moving average (MA) of 28.69, above the 50-day MA of 26.97, and above the 200-day MA of 26.68, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 79.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HUT.

Hut 8 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.48B	11.72	10.44%	3.82%	10.01%	1.29%
HUT	56 Neutral	C$3.14B	16.12	15.87%	―	2.40%	27.15%
HIVE	―	$455.69M	―	-15.83%	―	―	―
NDA	56 Neutral	C$144.88M	60.00	-0.89%	―	-20.75%	-84.00%
BBKCF	―	$27.95M	―	-110.80%	―	―	―
BITF	―	$697.55M	―	-15.17%	―	―	―
GLXY	―	$10.49B	―	-21.23%	―	―	―

* Financial Sector Average

Performance Comparison

TSE:HUT

Hut 8

30.78

15.72

104.38%

HIVE

HIVE Digital Technologies

2.23

-0.58

-20.64%

TSE:NDA

Neptune Digital Assets

1.16

0.90

346.15%

BBKCF

BIGG Digital Assets

0.08

-0.03

-27.27%

BITF

Bitfarms

1.27

-0.96

-43.05%

GLXY

Galaxy Digital

28.34

17.87

170.68%

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.Date of analysis: Aug 12, 2025