Hut 8 (HUT)
NASDAQ:HUT
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Hut 8
(NASDAQ:HUT)
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Rating:56Neutral
Price Target:
$125.00
▲(66.89% Upside)
Action:N/A
Date:06/17/26
The score is held back primarily by weak financial quality—large net losses, earnings volatility, and especially negative operating/free cash flow—despite strong revenue growth and improved operating profitability. Technicals are a meaningful positive with a clear uptrend across key moving averages and supportive momentum. Valuation is pressured by a negative P/E and no dividend yield provided. Earnings call commentary was broadly constructive on long-duration contracted cash flows and financing progress, but execution timing and near-term loss volatility remain notable risks.
Positive Factors
Long‑duration Triple‑Net Lease
A 15‑year triple‑net lease for 352 MW IT creates long-duration, predictable cash flows with a 3% escalator and minimal operational variability. This materially reduces sensitivity to Bitcoin price swings and mining cycles, improving revenue visibility and supporting long-term project financing and NOI stability.
Negative Factors
Negative Operating and Free Cash Flow
Persistently negative operating and free cash flow indicate the business is consuming cash to run and scale, forcing reliance on external financing or asset sales. Over a multi‑quarter horizon this raises funding risk for capex and delays in self‑funding large greenfield deployments if market access tightens.
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Positive Factors
Negative Factors
Long‑duration Triple‑Net Lease
A 15‑year triple‑net lease for 352 MW IT creates long-duration, predictable cash flows with a 3% escalator and minimal operational variability. This materially reduces sensitivity to Bitcoin price swings and mining cycles, improving revenue visibility and supporting long-term project financing and NOI stability.
Read all positive factors
Hut 8 (HUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.01B
Dividend YieldN/A
Average Volume (3M)7.16M
Price to Earnings (P/E)―
Beta (1Y)2.84
Revenue Growth114.65%
EPS Growth-386.24%
CountryUS
Employees222
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-2.73
Shares Outstanding112,594,110
10 Day Avg. Volume8,395,766
30 Day Avg. Volume7,164,584
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)4.68
Price to Sales (P/S)27.79
P/FCF Ratio-18.35
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue48.07
Enterprise Value/Gross Profit149.38
Enterprise Value/Ebitda50.64
Forecast
1Y Price Target
$123.53Price Target Upside64.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)-3.04
Revenue Forecast (FY)$339.55M
Hut 8 Business Overview & Revenue Model
Company Description
Hut 8 Corp. operates as a vertically integrated enterprise, encompassing the entire process from substantial energy infrastructure development to digital asset mining. The company conceptualizes, constructs, oversees, and runs specialized data cen...
How the Company Makes Money
Hut 8 primarily makes money through (1) Bitcoin mining, (2) digital infrastructure and hosting/colocation-style services, and (3) Bitcoin-related treasury activities.
1) Bitcoin mining revenue: The company earns revenue by operating specialized m...
Hut 8 Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call communicated substantial operational progress and a transition toward durable, investment-grade contracted cash flows: meaningful top-line growth (+226% YoY), dramatic margin improvement, large AI data center commercialization (Beacon Point) and a landmark $3.25B River Bend financing that validated the development and financing model. Management emphasized repeatability, nonrecourse capital structures, a large 8.4 GW pipeline, improved liquidity (~$1.3B cash & BTC) and meaningful compute segment expansion. Key near-term negatives include a large reported net loss driven by unrealized digital asset mark-to-market adjustments, limited current contribution from digital infrastructure until projects come online (expected ~Q2 2027), some revenue mix pressures (lower avg revenue per BTC) and execution/timing and regulatory risks inherent to large greenfield projects. On balance, the positive operational milestones, financing achievements, and contractually-backed long-duration revenue significantly outweigh the lowlights.Positive Updates
Strong Top-Line Growth and Margin Expansion
Revenue grew ~226% year-over-year to $71.0 million; gross margin expanded to ~64% from 14% in the prior year period, reflecting enhanced operating leverage.
Negative Updates
Large Reported Net Loss and Adjusted EBITDA Loss
Reported net loss of $253.1 million and adjusted EBITDA loss of $250.5 million for the quarter, driven primarily by unrealized mark-to-market losses on digital assets (consolidated Hut 8 and American Bitcoin exposures).
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Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth and Margin Expansion
Revenue grew ~226% year-over-year to $71.0 million; gross margin expanded to ~64% from 14% in the prior year period, reflecting enhanced operating leverage.
Read all positive updates
Company Guidance
Management’s guidance centered on execution and disciplined scaling: Beacon Point Phase 1 is commercialized as a 15‑year triple‑net lease covering 352 MW IT (500 MW utility) after redesign from 224 MW IP, with $9.8B base‑term contract value (3% annual escalator) and three 5‑year renewal options taking potential value to >$25B, CapEx guidance of $9–$11M/MW and ~99.9% revenue-to‑NOI drop‑through under the triple‑net; River Bend closed post‑quarter with $3.25B of non‑recourse senior secured, fully amortizing 16.5‑year notes (~95% loan‑to‑cost, 6.192% coupon, BBB‑ S&P/Fitch, non‑callable), recycling $184M of equity and targeting initial data‑hall delivery Q2 2027. The two leases are expected to produce ~ $16.8B of contracted revenue flowing to NOI over the initial 15‑year terms and about $1.1B of annual NOI, while the company advances an 8.4 GW development pipeline and asks investors to track delivery execution, deal/credit quality and balance‑sheet discipline; quarter metrics included $71M revenue (+226% YoY), compute revenue ~$66M (Bitcoin mined up 135 → 817 YoY; ARP/BTC ~$91,512 → ~$76,077), net loss $253.1M and adjusted EBITDA loss $250.5M driven by unrealized mark‑to‑market on digital assets, parent liquidity ~ $1.3B (cash + BTC) with ~5,600 unencumbered BTC and a refinanced $200M FalconX facility at 7% (vs 9% prior).Hut 8 Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 284.52M | 239.23M | 671.72M | 81.80M | 156.90M | 173.77M |
| Gross Profit | 91.56M | 25.89M | 585.07M | 21.17M | -41.95M | 88.80M |
| EBITDA | 270.09M | 17.65M | 531.11M | 1.36M | 3.57M | 74.67M |
| Net Income | -312.30M | -230.11M | 331.88M | 6.31M | -242.81M | -72.71M |
Balance Sheet | ||||||
| Total Assets | 2.61B | 3.02B | 1.52B | 976.87M | 412.94M | 720.71M |
| Cash, Cash Equivalents and Short-Term Investments | 160.74M | 47.20M | 85.04M | 47.36M | 30.52M | 140.13M |
| Total Debt | 423.21M | 444.80M | 345.65M | 203.33M | 47.42M | 40.69M |
| Total Liabilities | 920.22M | 1.33B | 538.28M | 252.59M | 55.55M | 154.74M |
| Stockholders Equity | 1.38B | 1.42B | 976.67M | 486.47M | 357.39M | 565.97M |
Cash Flow | ||||||
| Free Cash Flow | -322.41M | -362.39M | -333.13M | -27.30M | -177.74M | -166.67M |
| Operating Cash Flow | -132.45M | -141.66M | -68.53M | -26.48M | -105.03M | -80.24M |
| Investing Cash Flow | -751.37M | -767.41M | -188.47M | 65.70M | -103.61M | -235.07M |
| Financing Cash Flow | 932.49M | 871.11M | 311.95M | -25.19M | 99.83M | 455.84M |
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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.
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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.