Hut 8 (HUT) AI Stock Analysis

• Market Cap: C$7.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 35.6
• Beta (1Y): 2.58
• Revenue Growth: 2.40%
• EPS Growth: 27.15%
• Country: CA
• Employees: 222
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.62
• 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): 2.00
• Price to Sales (P/S): 2.90
• P/FCF Ratio: -5.85
• 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$73.16
• Price Target Upside: 2.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: C$71.00 ▼(-0.06% Downside)

Hut 8's overall stock score is driven by strong technical indicators and positive earnings call sentiment, despite financial performance challenges. The company's strategic advancements and revenue growth contribute positively, but high valuation and cash flow issues weigh on the score.

Positive Factors

Revenue Growth

The 17% YoY revenue growth indicates effective strategic advancements and infrastructure upgrades, enhancing long-term revenue potential.

Strategic Asset Commercialization

Securing long-term capacity agreements enhances revenue predictability and supports sustainable growth in the Compute segment.

Net Income Improvement

The shift to positive net income reflects improved operational efficiency and financial health, supporting long-term profitability.

Negative Factors

Negative Cash Flow

Persistent negative cash flows suggest inefficiencies in cash generation, potentially limiting future investment and growth opportunities.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which may hinder sustainable financial performance and growth.

Regulatory Challenges

Regulatory changes in British Columbia could restrict Hut 8's access to affordable energy, impacting operational costs and competitiveness.

Hut 8 Business Overview & Revenue Model

Company Description

Hut 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 Money

Hut 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 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 strong, but overall financial stability is hindered by operational inefficiencies.

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 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

• Technical Analysis Sentiment: Positive
• Last Price: 71.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 71.04 is above the 20-day moving average (MA) of 65.37, above the 50-day MA of 52.03, and above the 200-day MA of 31.24, indicating a bullish trend. The MACD of 5.00 indicates Positive momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLXY	―	$20.15B	31.80	-2.96%	―	―	-122.23%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUT	―	C$7.17B	35.57	15.87%	―	2.40%	27.15%
NDA	―	C$116.92M	―	-0.89%	―	-20.75%	-84.00%
HIVE	―	$1.69B	―	-5.84%	―	7.57%	40.56%
BITF	―	$3.09B	―	-15.17%	―	46.65%	44.91%
BIGG	―	C$35.01M	―	-102.00%	―	34.56%	-161.07%

Hut 8 Corporate Events

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.

Hut 8 Corp. Earnings Call Highlights Strong Growth

The recent earnings call for Hut 8 Corp. painted a positive picture, highlighting substantial financial improvements and strategic advancements. The company reported significant increases in revenue, net income, and adjusted EBITDA, driven by strategic investments and operational enhancements. The shift towards contracted assets has improved revenue predictability, although there were some declines in the Power and Digital Infrastructure segments due to terminated agreements. Overall, the sentiment was optimistic, underscored by the company’s substantial financial gains and strategic progress.