Hut 8’s Wild Ride: From Bitcoin Blues to AI Dreams (With a $301M Oopsie)

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Key Takeaways (Because Who Has Time for the Whole Story?)

  • Hut 8’s Revenue did a 179% cartwheel, but still tripped over expectations.
  • Net loss? Oh, just a casual $301M, thanks to Bitcoin’s mood swings.
  • Gross margin hit 60% – finally, something to brag about at the water cooler.
  • AI is the new black, and Hut 8 is all over it like a hashtag on a trending tweet.
  • Investors: “Crypto who? We’re here for the AI glitter.”

So, Hut 8 decided to swap its Bitcoin miner hat for an AI crown, and let’s just say the transition is as smooth as a first date with a chatbot. Despite a net loss that could make a Kardashian’s divorce settlement blush, revenue soared like a meme stock on a good day. Management’s pivot to AI infrastructure is either genius or a Hail Mary, but hey, at least they’re keeping it interesting.

The market? Oh, it’s totally buying the “AI is the future” story, because who doesn’t love a good redemption arc? Shares ticked up 2.4%, proving that investors are more forgiving than your ex after you forgot their birthday. Again.

Revenue Moonwalks 179%, But Earnings Faceplant

For Q4 2025, Hut 8 raked in $88.5 million, a 179% leap from last year’s $31.7 million. Impressive, right? Wrong. Analysts were expecting $95.6 million, so let’s call this a participation trophy moment.

The bottom line? A $301.8 million net loss, because Bitcoin decided to have a quarter-life crisis. Adjusted EBITDA was -$347.8 million, down from a cool $310.6 million profit last year. Ouch. But hey, earnings per share of -$0.1101 beat expectations, so there’s that. Silver linings, people.

Gross margin hit 60%, up from 36% last year. Finally, something to clap for. Even if the rest of the numbers look like they’ve been through a blender.

Bitcoin: The Ex That Keeps Haunting You

Turns out, most of the loss was a $401.9 million unrealized mark-to-market hit on their Bitcoin stash. Because nothing says “fun” like watching your crypto portfolio do the cha-cha. Hut 8 ended the year with 13,696 BTC, worth $1.4 billion, down from $1.6 billion in Q3. Bitcoin’s 25% drop? That’s just “noise,” according to management. Sure, Jan.

Executives called it “accounting-driven,” which is corporate speak for “not our fault.” Excluding this crypto drama, things actually look kinda okay. Margins are up, and segments are performing. Baby steps.

Compute Segment: The New Prom Queen

The Compute segment is now the star of the show, raking in $81.9 million (92% of total revenue). Bitcoin mining? So last season. GPU-as-a-Service and cloud infrastructure? Now that’s hot. CEO Asher Genoot called 2025 the year of the “power-first” pivot, because nothing says “we’re serious” like a buzzy tagline.

AI Dreams and $7B Leases (Because Why Not?)

Hut 8’s development pipeline is now 8,500 megawatts, with 330 MW under construction. The crown jewel? The 245 MW River Bend campus, a data center so big it’s basically AI’s new playground. Backed by a $7.0 billion lease with Fluidstack (thanks, Google!), it’s set to deliver in Q2 2027. Mark your calendars, folks.

Strategic Reset: Crypto Who?

Hut 8 is done with the crypto rollercoaster. Instead, they’re betting on AI data centers and high-performance computing for steady cash flows. Because who needs Bitcoin’s drama when you can have AI’s… well, different kind of drama?

Investors are eating it up, separating the crypto noise from the AI promise. The stock’s post-earnings bump? Proof that the market loves a good glow-up story. Hut 8’s AI pivot might just be the plot twist we didn’t know we needed.

Disclaimer: This is not financial advice. If you’re taking stock tips from a snarky HTML rewrite, you might want to reevaluate your life choices.

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2026-02-26 10:45