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Hut 8 (TSE:HUT)
TSX:HUT
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Hut 8
(TSX:HUT)
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Rating:60Neutral
Price Target:
C$35.00
▼(-29.85% Downside)
The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash management. However, strong technical indicators and reasonable valuation provide some support. The positive sentiment from the earnings call is acknowledged but not directly factored into the score due to its exclusion from the weighted calculation.
Positive Factors
Revenue Growth
The 17% YoY revenue growth indicates strong market demand and effective execution of infrastructure upgrades, supporting long-term growth.
Strategic Expansion
Expanding to four new sites in the U.S. enhances Hut 8's capacity and market reach, positioning it to capitalize on increasing demand for energy-intensive applications.
Asset Commercialization
Securing long-term capacity agreements strengthens revenue predictability and supports sustainable business operations.
Negative Factors
Profitability Challenges
Ongoing profitability issues, highlighted by negative margins, indicate operational inefficiencies that could hinder long-term financial health.
Cash Flow Concerns
Persistent negative cash flows suggest inefficiencies in cash generation, potentially limiting the company's ability to invest in growth opportunities.
Revenue Decline in Power Segment
The decline in power segment revenue due to terminated agreements could impact future revenue stability and diversification efforts.
Hut 8 (HUT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.26B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)26.1
Beta (1Y)2.45
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. Volume1,966,445
30 Day Avg. Volume1,771,966
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$43.57Price Target Upside-12.67% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Hut 8 Business Overview & Revenue Model
Company DescriptionHut 8 Mining Corp. is a leading cryptocurrency mining company based in Canada, primarily focused on Bitcoin and cryptocurrency mining operations. The company operates large-scale mining facilities that utilize advanced technology and energy-efficient practices to mine digital currencies. Additionally, Hut 8 engages in the storage and management of digital assets, positioning itself as a key player in the blockchain ecosystem.
How the Company Makes MoneyHut 8 generates revenue primarily through the mining of cryptocurrencies, particularly Bitcoin. The company's operations are powered by a vast array of specialized mining hardware that solves complex mathematical problems to validate transactions on the Bitcoin network, thereby earning block rewards and transaction fees. Another significant revenue stream comes from the storage and management of digital assets, which includes providing custody services for clients. Furthermore, Hut 8 has strategically partnered with energy providers to secure competitive electricity rates, enhancing its profitability by lowering operational costs. The company also benefits from fluctuations in Bitcoin prices, as higher market values directly increase the revenue generated from mined coins.
Hut 8 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including substantial revenue growth, a positive net income, and successful Bitcoin mining operations. However, challenges were noted in the Power and Digital Infrastructure segments due to the termination of agreements, which led to revenue declines. Despite these challenges, the overall sentiment is positive due to the strong financial performance and strategic progress.Q2-2025 Updates
Positive Updates
Significant Year-Over-Year Revenue Growth
Hut 8 delivered $41.3 million in revenue for Q2 2025, marking a 17% increase year-over-year, driven by infrastructure and ASIC fleet upgrades.
Strong Net Income and Adjusted EBITDA
Net income attributable to Hut 8 was $137.3 million compared to a loss of $71.9 million in the prior year. Adjusted EBITDA was $221.2 million versus a loss of $57.5 million the previous year.
Successful Bitcoin Mining Operations
American Bitcoin commenced Bitcoin mining operations, contributing significantly to the Compute segment with a $16.4 million uplift in Bitcoin mining revenue.
Successful Asset Commercialization
The company executed contracts for 130+ megawatts of managed services and ASIC colocation, securing 5-year capacity agreements for 310 megawatts of power generation capacity.
American Bitcoin Public Listing Progress
The go-public transaction for American Bitcoin is progressing well, with a major milestone achieved as the Form S-4 was declared effective by the SEC.
Negative Updates
Decline in Power Segment Revenue
Power segment revenue dropped to $5.5 million from $10.5 million in the prior year due to a $7.8 million decline in managed services revenue after the termination of the Ionic Digital agreement.
Digital Infrastructure Revenue Decrease
Revenue from the Digital Infrastructure segment decreased by $3.8 million year-over-year, driven by the termination of the ASIC colocation agreement with Ionic Digital.
Elimination of Intercompany Revenue
Revenue from agreements with American Bitcoin is eliminated in consolidation, obscuring the full economic contribution to the Hut 8 platform.
Company Guidance
During the Hut 8 Second Quarter 2025 Earnings Conference Call, the company provided several key metrics highlighting their financial performance and strategic advancements. Hut 8 reported a revenue of $41.3 million for the quarter, marking a 17% year-over-year increase. This growth was largely driven by infrastructure and ASIC fleet upgrades, leading to a $16.4 million uplift in Bitcoin mining revenue within their Compute segment. The company's net income soared to $137.3 million from a loss of $71.9 million in the prior year, while adjusted EBITDA reached $221.2 million, compared to a loss of $57.5 million the previous year. A notable $217.6 million gain on digital assets was recorded, reflecting significant financial progress. Additionally, Hut 8 emphasized their strategic shift towards contracted assets, achieving approximately 90% commercialization of their energy capacity under management through executed agreements as of quarter-end, up from less than 30% in Q2 2024. The launch of American Bitcoin, a majority-owned subsidiary, was a pivotal development, with its operations contributing to the Compute segment's growth, albeit with intercompany transactions eliminated in consolidation. The company also expanded its power generation capacity through five-year contracts, reinforcing revenue predictability and long-term capital planning.Hut 8 Financial Statement Overview
Summary
Hut 8 faces significant financial challenges, particularly in profitability and cash management. The income statement shows a 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 but indicates room for improvement in asset utilization.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.35
Negative
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.60
Neutral
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.35M | 671.72M | 81.80M | 150.68M | 81.99M | 49.44M |
| Gross Profit | -64.08M | 585.07M | 21.17M | -24.97M | 2.13M | -23.48M |
| EBITDA | 168.75M | 531.11M | 1.36M | 3.57M | 30.40M | -2.76M |
| Net Income | -79.35M | 331.88M | 16.45M | -242.81M | 2.13M | -136.77M |
Balance Sheet | ||||||
| Total Assets | 1.57B | 1.52B | 976.87M | 412.94M | 71.24M | 82.90M |
| Cash, Cash Equivalents and Short-Term Investments | 108.38M | 85.04M | 47.36M | 30.52M | 2.95M | 3.56M |
| Total Debt | 354.86M | 345.65M | 268.75M | 47.42M | 26.04M | 32.37M |
| Total Liabilities | 584.19M | 538.28M | 333.87M | 55.55M | 28.54M | 50.24M |
| Stockholders Equity | 959.99M | 976.67M | 643.00M | 357.39M | 42.70M | 32.66M |
Cash Flow | ||||||
| Free Cash Flow | -398.94M | -333.13M | -27.30M | -177.74M | 5.27M | -91.14M |
| Operating Cash Flow | -82.17M | -68.53M | -26.48M | -105.03M | 14.51M | -6.77M |
| Investing Cash Flow | -321.54M | -188.47M | 87.25M | -103.61M | -9.73M | -90.16M |
| Financing Cash Flow | 502.03M | 311.95M | -33.45M | 99.83M | -5.39M | 77.24M |
Hut 8 Technical Analysis
Positive
49.89
Price Trends
33.94
Positive
28.53
Positive
27.65
Positive
Market Momentum
5.02
Negative
75.24
Negative
85.45
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 49.89 is above the 20-day moving average (MA) of 40.66, above the 50-day MA of 33.94, and above the 200-day MA of 27.65, indicating a bullish trend. The MACD of 5.02 indicates Negative momentum. The RSI at 75.24 is Negative, neither overbought nor oversold. The STOCH value of 85.45 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 17.28B | -14.99 | 0.00% | ― | 0.00% | -165.00% | |
60 Neutral | C$5.26B | 26.13 | 15.87% | ― | 2.40% | 27.15% | |
60 Neutral | 2.38B | -17.78 | -13.01% | ― | 46.65% | 44.91% | |
56 Neutral | 149.97M | -256.52 | 0.00% | ― | -20.75% | -84.00% | |
51 Neutral | 1.19B | -16.55 | 5.13% | ― | 7.57% | 40.56% | |
48 Neutral | 42.01M | -1.54 | -147.31% | ― | 34.56% | -161.07% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
TSE:HUT
Hut 8
49.89
34.26
219.19%
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3.79
0.66
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Neptune Digital Assets
1.18
0.94
391.67%
BBKCF
BIGG Digital Assets
0.09
-0.02
-18.18%
BITF
Bitfarms
3.12
1.07
52.20%
GLXY
Galaxy Digital
32.87
21.49
188.84%
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.