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Hut 8
(TSX:HUT)
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Rating:62Neutral
Price Target:
C$178.00
▲(50.53% Upside)
Action:Reiterated
Date:05/21/26
The score balances strong technical momentum and a constructive earnings-call outlook around large contracted, investment-grade-style projects and financing progress against weak underlying financial performance driven by large net losses and persistent negative operating/free cash flow. Valuation is also constrained by negative earnings and no indicated dividend support.
Positive Factors
Revenue and Margin Expansion
The sharp improvement in revenue, gross margin, and adjusted EBITDA indicates stronger operating performance as Hut 8 expands its compute capacity. If sustained, this progress can improve the economics of the platform, support reinvestment, and lessen reliance on volatile Bitcoin-related results.
Negative Factors
Persistent Losses and Cash Burn
Sustained negative operating and free cash flow means Hut 8 is not currently funding its operations and expansion internally. The large loss base can constrain flexibility, increase dependence on external capital, and make execution more sensitive to financing conditions and operating volatility.
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Positive Factors
Negative Factors
Revenue and Margin Expansion
The sharp improvement in revenue, gross margin, and adjusted EBITDA indicates stronger operating performance as Hut 8 expands its compute capacity. If sustained, this progress can improve the economics of the platform, support reinvestment, and lessen reliance on volatile Bitcoin-related results.
Read all positive factors
Hut 8 (HUT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$15.91B
Dividend YieldN/A
Average Volume (3M)450.90K
Price to Earnings (P/E)―
Beta (1Y)2.60
Revenue Growth128.38%
EPS Growth-448.69%
CountryCA
Employees248
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-5.41
Shares Outstanding123,259,470
10 Day Avg. Volume425,825
30 Day Avg. Volume450,898
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)3.40
Price to Sales (P/S)320.85
P/FCF Ratio-6.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$230.37Price Target Upside94.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)-4.15
Revenue Forecast (FY)C$464.76M
Hut 8 Business Overview & Revenue Model
Company Description
Hut 8 Corp., together with its subsidiaries, operates as an energy infrastructure platform that integrates power, digital infrastructure, and compute at scale to fuel energy-intensive use cases in the United States and Canada. It operates through ...
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:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational progress (revenue +81% YoY), margin expansion, improved adjusted EBITDA, a sizable and higher-quality development pipeline (8.7 GW), and two landmark investment-grade, nonrecourse project financings totaling ~$7.5B that validate the repeatable capital formation model. Key near-term negatives are a large GAAP net loss driven by bitcoin mark-to-market, a noticeable increase in reported G&A (largely non-cash), higher consolidated debt on the balance sheet (although largely ring-fenced), and regulatory/community development risks in some markets. On balance, the highlights—robust revenue and margin improvement, proof points of scalable financing, and a growing contracted AI data center backlog—outweigh the lowlights tied mainly to non-cash accounting swings and transitional costs, supporting a constructive view of the company’s platform evolution.Positive Updates
Strong Revenue Growth and Margin Expansion
Revenue increased ~81% year-over-year to $74.9 million. Gross profit was approximately $48 million and gross margin expanded to ~64% (from ~47% prior year). Adjusted EBITDA (ex digital asset mark-to-market) was $10.4 million versus $4.2 million in the prior year period.
Negative Updates
Large GAAP Net Loss Driven by Digital Asset Mark-to-Market
GAAP net loss was $177.1 million for the quarter, primarily due to a $138 million non-cash mark-to-market loss on digital assets (bitcoin decline this quarter compared to prior year increase). This created a wide disparity between positive operational metrics and GAAP earnings.
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Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Margin Expansion
Revenue increased ~81% year-over-year to $74.9 million. Gross profit was approximately $48 million and gross margin expanded to ~64% (from ~47% prior year). Adjusted EBITDA (ex digital asset mark-to-market) was $10.4 million versus $4.2 million in the prior year period.
Read all positive updates
Company Guidance
Management’s guidance emphasized transitioning to long‑duration contracted digital infrastructure while the operating business strengthens: revenue rose ~81% YoY to $74.9M, gross profit ≈$48M (gross margin ≈64% vs 47% LY), adjusted EBITDA ex‑digital‑asset mark‑to‑market $10.4M (vs $4.2M), and a GAAP net loss of $177.1M driven by a $138M digital‑asset mark‑to‑market swing; compute revenue was $72.5M (bitcoin mined up from ~308 to ~935, segment margin ~66%), digital infrastructure revenue $1.3M and power revenue $1.2M. Capital formation was a focal point: Hut 8 raised ~$7.5B of investment‑grade, nonrecourse, fully amortizing project financing ($3.25B River Bend notes, $4.25B Beacon Point notes), bringing consolidated cash and restricted cash to ~ $7.0B (unrestricted ~$233.6M, restricted ~$6.8B) and total debt to ~ $7.6B; interest income on undrawn proceeds was $27.1M and $5.7M of interest was capitalized. On development, the pipeline is ~8.7 GW (up ~300MW QoQ) with 11 sites in diligence/exclusivity averaging >650MW (exclusivity +200MW), Beacon Point now 704MW (~$19.6B expected base‑term value) including a 352MW Building 2 (~$9.8B), River Bend + Beacon Point total contracted AI capacity ~949MW (~$26.6B aggregate base‑term value), and management reiterated ~99% NOI on triple‑net leases and an expected ≈$1.7B/year cash flow profile from roughly $27B of contracted revenue as the business mix shifts.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 | -7.33M | 15.08M | 162.38M | 72.32M | 65.48M | 79.19M |
| Gross Profit | -101.04M | -92.69M | 75.73M | 31.51M | 32.93M | 53.40M |
| EBITDA | -611.14M | -165.25M | 528.71M | 43.60M | -14.95M | -7.82M |
| Net Income | -599.61M | -226.15M | 331.88M | 16.45M | -49.53M | -31.80M |
Balance Sheet | ||||||
| Total Assets | 9.98B | 2.75B | 1.52B | 976.87M | 311.72M | 720.71M |
| Cash, Cash Equivalents and Short-Term Investments | 7.02B | 44.91M | 85.04M | 47.36M | 23.04M | 140.13M |
| Total Debt | 7.67B | 429.33M | 345.65M | 203.33M | 35.80M | 40.69M |
| Total Liabilities | 8.22B | 1.06B | 538.28M | 333.87M | 41.93M | 154.74M |
| Stockholders Equity | 1.44B | 1.42B | 976.67M | 643.00M | 269.79M | 565.97M |
Cash Flow | ||||||
| Free Cash Flow | -1.24B | -787.31M | -333.13M | -27.30M | -134.17M | -166.67M |
| Operating Cash Flow | -89.44M | -139.23M | -68.53M | -26.48M | -79.29M | -80.24M |
| Investing Cash Flow | -1.29B | -754.21M | -188.47M | 64.65M | -78.21M | -235.07M |
| Financing Cash Flow | 8.18B | 856.13M | 311.95M | -24.78M | 75.36M | 455.84M |
Hut 8 Technical Analysis
Positive
118.25
Price Trends
134.28
Negative
138.28
Negative
104.41
Positive
Market Momentum
-4.69
Negative
54.13
Neutral
68.22
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 118.25 is above the 20-day moving average (MA) of 117.16, below the 50-day MA of 134.28, and above the 200-day MA of 104.41, indicating a neutral trend. The MACD of -4.69 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HUT.
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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.
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.