Hut 8 Corp. (HUT)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 was a deliberate investment quarter: revenue fell to $21.8M, net loss was ($134.3)M, and Adjusted EBITDA was ($117.7)M as Hut 8 upgraded its ASIC fleet, launched American Bitcoin, and prepared Vega for Q2 energization .
• Results missed S&P Global consensus: revenue $21.8M vs $30.0M est., EPS ($1.30) vs ($0.86) est., and EBITDA ($117.7)M vs $7.6M est.; non-cash fair-value losses on digital assets ($112.4M) and downtime for fleet upgrades drove the miss; management cited halving-driven difficulty as an additional headwind . Estimates marked with * are from S&P Global.
• Strategic repositioning: Hut 8 carved out substantially all miners into majority-owned American Bitcoin, converting cyclical mining economics into more predictable, fiat-denominated revenues via colocation and managed services agreements with an “anchor tenant” while retaining Bitcoin exposure through equity ownership and a 10,264 BTC reserve ($847.2M value at 3/31/25) .
• Near-term catalysts: Vega 205 MW site on track to energize in Q2 2025 with direct-to-chip liquid cooling; River Bend campus land secured with initial site work underway; software and O&M stack in place to optimize ASIC operations and energy consumption .

What Went Well and What Went Wrong

• What Went Well

  • Executed ASIC fleet upgrade: deployed hashrate rose 79% QoQ to 9.3 EH/s and fleet efficiency improved ~37% to ~20 J/TH by quarter-end; management expects a step-change in mining economics beginning Q2 2025 .
  • Strategic carve-out: Launched American Bitcoin to resolve capital allocation tension, create recurring fiat-based colocation and managed services revenues, and preserve BTC upside via equity ownership; “one plus one here is greater than two” (CEO) .
  • Platform buildout: Vega remains on track for Q2 2025 energization; River Bend (592 acres) secured with initial sitework underway; continued progress on utility-scale power origination (~10,800 MW pipeline, ~2,600 MW under exclusivity as of 3/31/25) .

• What Went Wrong

  • Top-line and profitability pressure: Revenue fell to $21.8M vs $51.7M YoY; Adjusted EBITDA swung to ($117.7)M; net loss ($134.3)M driven primarily by a $112.4M non-cash loss on digital assets (FASB fair value) and planned downtime for fleet upgrades .
  • Higher unit energy costs during downtime: Energy cost per MWh rose to $51.71 vs $40.06 YoY due to fixed T&D charges spread over lower consumption during planned downtime .
  • Segment revenue declines from contract changes: Power ($4.4M) and Digital Infrastructure ($1.3M) down YoY largely due to termination of agreements with Ionic Digital, which freed capacity for Hut 8’s upgrade and American Bitcoin ramp, but pressured Q1 revenue .

Financial Results

• Results vs prior quarters

• Q1 2025 actuals vs S&P Global consensus

Values marked with * are from S&P Global.

• Segment revenue (YoY)

• KPIs

Context: The YoY drop in mined BTC and the higher cost to mine reflect halving-driven difficulty and planned downtime for fleet upgrades; weighted revenue per BTC rose with higher BTC prices, but non-cash marks drove large GAAP volatility .

Guidance Changes

• No formal quantitative financial guidance was issued. Management reaffirmed operational timelines and milestones.

Earnings Call Themes & Trends

Management Commentary

• “The first quarter was a deliberate and necessary phase of investment designed to accelerate our development flywheel… We executed our fleet upgrade, launched American Bitcoin, and advanced key infrastructure projects.” – CEO Asher Genoot .
• “The majority of this variance stems from $112.4 million non-cash loss on digital assets under the new FASB Fair Value Accounting rules… Bitcoin declined from ~$93k to ~$82.5k during the quarter.” – CEO Asher Genoot .
• “We structured three agreements… colocation, managed services, and shared services… converting cyclical mining economics into stable, contracted revenue streams.” – CFO Sean Glennan .
• “Vega is a key strategic asset… proprietary rack-based direct-to-chip liquid cooling… expected to enable materially higher compute density and improved uptime in high ambient environments like Texas.” – CEO Asher Genoot .
• “From inception to quarter end, we have raised $275.5 million in net proceeds from our ATM… and ended with 10,264 Bitcoin held in reserve valued at $847.2 million.” – CFO Sean Glennan .

Q&A Highlights

• River Bend structure and cadence: Management is evaluating yield-on-cost vs fixed $/kW-month structures across projects; River Bend sitework covers ~75 acres for switchyard and substation; they prioritize larger definitive milestones over interim LOIs in disclosures .
• Colocation economics with American Bitcoin: Payback designed to roughly match miner depreciation; layered value through colocation, managed services, and shared services; equity exposure adds upside .
• Pipeline moderation: The reduced “under diligence/exclusivity” reflects active filtering to focus on sites with the highest conversion probability and executable capital pathways; not competitive displacement .
• Balance sheet/liquidity: Coinbase credit facility maturity (mid-June) under discussion with potential extension on better terms, aiming to lower cost of capital; ATM raised $275.5M; BTC reserve provides optionality .
• American Bitcoin roadmap: Private capital raise prior to go-public transaction; scale plan includes Vega option (~15 EH/s at ~13 J/TH) and additional phases toward 50 EH/s; tariffs managed via diversified manufacturing/geographies and purchase timing discipline .

Estimates Context

• Q1 2025 vs consensus (S&P Global): Revenue $21.8M vs $30.0M est. (MISS), EPS ($1.30) vs ($0.86) est. (MISS), EBITDA ($117.7)M vs $7.6M est. (MISS). Primary drivers: planned downtime for fleet upgrade (lower production), higher network difficulty post-April 2024 halving, and a $112.4M non-cash fair value loss on digital assets due to BTC price decline during the quarter . Values marked with * are from S&P Global.

Key Takeaways for Investors

• Near-term print was weak by design; the investment phase (fleet and sites) is complete, positioning for improved unit economics from Q2 2025 as upgraded hash rate and efficiency flow through .
• The American Bitcoin carve-out clarifies capital allocation, adds contracted fiat revenue streams (colocation/managed services), and preserves BTC upside through equity—reducing parent-level earnings volatility over time .
• Vega’s direct-to-chip liquid cooling and rack-based architecture could be a strategic cost/performance advantage for dense compute, with optionality to support future GPU/HPC demand at materially lower $/MW build costs .
• Watch for data center commercialization milestones (River Bend and two additional AI DC projects >230 MW IT combined) as the next leg of the equity narrative and valuation re-rating .
• Balance sheet optionality is meaningful (10,264 BTC, $847.2M at 3/31/25) with multiple funding levers (ATM, project-level equity/debt, potential facility refinancings) to support capex without undue dilution .
• Operational KPIs to monitor in Q2: realized hash price, BTC mined, energy cost per MWh normalization post-downtime, and contribution from ABTC-related colocation/managed services .
• Risk checks: BTC volatility (fair-value marks), power costs, execution risk on AI DC commercialization, and timing of American Bitcoin go-public transaction .

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Additional source documents cited:

• Q1 2025 press release and 8-K 2.02:
• Q1 2025 earnings call transcript:
• Q4 2024 press release:
• Q3 2024 press release:

Estimates disclaimer: Consensus estimates marked with * were retrieved from S&P Global.