Hut 8 (HUT -5.03%), a leading energy and compute infrastructure company best known for its Bitcoin mining and digital infrastructure operations, released second-quarter 2025 earnings on August 7, 2025. The most notable news was a substantial rebound in net income (GAAP) to $137.5 million, reversing a loss from the prior year. However, revenue (GAAP) came in at $41.3 million, falling short of the analyst consensus estimate of $48.5 million. This marked a notable revenue miss, with GAAP revenue falling short of the analyst estimate of $48.55 million by approximately 14.9%. Even as revenue grew 17% for the three months ended June 30, 2025 compared to the prior year period, it still fell short of the analyst consensus estimate of $48.5 million. While adjusted EBITDA improved considerably, material volatility persisted across operating segments. Overall, the period showed significant progress on company transformation efforts, but underscored ongoing execution challenges related to shifting strategy and market dynamics.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS, Diluted | $1.18 | ($0.07) | ($0.78) | $1.96 |
| Revenue | $41.3 million | $48.55 million | $35.2 million | 17.3% |
| Net Income | $137.5 million | ($72.2 million) | — | |
| Adjusted EBITDA | $221.2 million | ($57.5 million) | 484.7% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Key Focus Areas
Hut 8 operates at the intersection of energy management and digital infrastructure, with a core business built around three segments: Power, Digital Infrastructure, and Compute. Its operations span managing megawatt-scale energy assets, hosting advanced data centers, and operating large-scale cryptocurrency mining hardware. This diversified platform allows the company to monetize both the energy and compute requirements of clients ranging from Bitcoin miners to artificial intelligence (AI) and high-performance computing (HPC) workloads.
Recently, the company concentrated on expanding contracted energy assets and developing next-generation data centers with a “power-first” approach. Major projects include the Vega data center, featuring a proprietary direct-to-chip liquid cooling system designed to narrow the gap between legacy air-cooled ASIC infrastructure and liquid-cooled GPU infrastructure, as well as the River Bend campus for future high-density demand. Key success factors now revolve around securing long-term contracts for energy assets, growing more stable non-crypto revenues, and adapting its digital infrastructure to the needs of emerging compute markets.
Quarter in Review: Segment Shifts, Revenue Miss, and Major Developments
However, this fell well below the consensus estimate by about $7.2 million, or nearly 14.9%. The miss is notable as it came amidst management’s focus on expanding new contracts and operational capacity, with GAAP revenue falling short of the analyst estimate of $48.5 million. In addition, while total revenue grew, there were marked declines in two out of three segments: Power revenue dropped from $10.5 million in Q2 2024 to $5.5 million, and Digital Infrastructure revenue fell from $5.3 million in Q2 2024 to $1.5 million, based on GAAP results. This was offset by a sharp rise in Compute revenue, which more than doubled from $15.8 million in Q2 2024 to $34.3 million (GAAP), now forming the bulk of Hut 8’s revenues.
The reduction in Power and Digital Infrastructure was driven by the end of older contracts, like those with Ionic Digital, which freed up site capacity for new anchor relationships, including American Bitcoin, as discussed previously. While this strategy is expected to enable stronger, longer-term revenue streams, it created a short-term lull in topline growth and contributed to the overall revenue miss relative to analyst expectations (GAAP revenue of $41.3 million vs. analyst estimate of $48.5 million).
On the product innovation front, significant progress came from the Vega data center project. Vega features a proprietary direct-to-chip liquid cooling system that narrows the gap between legacy air-cooled ASIC infrastructure and liquid-cooled GPU infrastructure. This facility completed its initial energization during the quarter, with future commercial ramp pending, and is intended to serve both in-house needs and third-party tenants such as BITMAIN, a major hardware provider.
The Compute segment’s surge was aided by the carve-out of American Bitcoin, a stand-alone mining operation acting as a major tenant for Hut 8’s infrastructure. The period also saw American Bitcoin announce a planned public listing through an acquisition by Gryphon Digital Mining, and the successful completion of a $220 million private placement. Hut 8’s strategic Bitcoin reserve was 10,667 coins (roughly $1.1 billion in market value) as of quarter end.
The balance sheet was further strengthened when Hut 8 doubled its Bitcoin-backed credit facility with Coinbase to $130 million, while also reducing the interest rate and extending maturity to June 2026. This change resulted in improved financial terms. Energy cost pressures, however, are rising: energy cost per megawatt hour climbed to $39.82 from $31.71 in Q2 2024, reflecting broader inflation and scale-related factors.
Development pipeline dynamics also shifted. Hut 8 reported a ~10,800 MW project pipeline as of quarter end, but the volume under exclusivity grew from ~2,600 MW as of March 31, 2025 to ~3,100 MW as of June 30, 2025, with management emphasizing a deliberate focus on only the most promising projects rather than chasing scale for its own sake. As CEO Asher Genoot explained, “if we don’t think it’s a perfect site and a really competitive site, we’re willing to walk away rather than just show the market a larger and larger pipeline.”
Non-cash gains on digital assets, mostly due to revaluation of Bitcoin holdings, were the main driver of net income swinging sharply into positive territory. The $217.6 million in asset gains more than offset core operational softness, which means reported profit may not be a direct indicator of cash generation from ordinary operations. Hut 8 remains heavily reliant on Compute-driven revenue, which accounted for $34.3 million of total revenue (GAAP), and is closely tied to Bitcoin price and mining profitability, making future quarters sensitive to crypto market swings.
There was no dividend declared or raised during the quarter.
Outlook and Priorities for Coming Quarters
Looking ahead, management did not provide specific financial guidance for revenue or earnings in upcoming quarters or for the full fiscal year. The outlook discussion instead highlighted the anticipated ramp-up of the Vega data center, continued development at River Bend, and ongoing negotiations for new AI and HPC contracts. Plans are also advancing for the public listing of American Bitcoin, with related developments expected to shape reported results as that process unfolds.
In terms of operational milestones, investors should monitor how quickly new Digital Infrastructure projects bring in revenue, whether the diversification away from Bitcoin market dependency can reduce earnings volatility, and how ongoing energy and cost pressures affect margins. The large non-cash gains reflect asset price improvements HUT does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
