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Hut 8 Falls 9.7% After Quarterly Loss Despite Revenue Growth

The loss was mostly driven by unrealized losses on digital assets, while Hut 8 continues to scale its AI and HPC pipeline.

By Zenz van der Wielen
• 2 min read
Hut 8 Falls 9.7% After Quarterly Loss Despite Revenue Growth

Key Takeaways

  • Hut 8 fell 9.74% after reporting a quarterly net loss of $177.1 million, even as revenue rose 81% to $74.9 million.
  • The loss was largely tied to $138.6 million in unrealized losses on digital assets, while adjusted EBITDA excluding digital assets increased to $10.4 million.
  • The AI pipeline expanded to 949 MW, and Hut 8 closed $7.5 billion in project notes to support further growth.

Hut 8 shares slid on Tuesday after the company reported a sharp quarterly loss, even though revenue came in much higher than a year earlier. The stock dropped 9.74% to $101.16 (€88), while second-quarter revenue rose 81% to $74.9 million (€65 million). In after-hours trading, the shares ticked up to $102.47 (€89).

Loss Outweighed Revenue Growth

The market appeared to focus on the $177.1 million (€154 million) net loss. Hut 8 said $138.6 million (€120 million) of that came from mostly unrealized losses on digital assets. That was a stark reversal from the same quarter a year earlier, when the company posted $137.5 million (€119 million) in net income in the second quarter of 2025, helped by gains on digital assets.

The operating picture was stronger than the headline loss suggested. Adjusted EBITDA excluding digital assets rose to $10.4 million (€9 million) from $4.2 million (€3.6 million) a year ago. Hut 8 also reported adjusted EBITDA including mark-to-market on digital assets at negative $94.6 million (€82.2 million), compared with $221.2 million (€192 million) in the same period last year.

AI Pipeline Is Growing Fast

Even with the weak earnings print, Hut 8’s commercial pipeline continued to expand quickly. Contracted IT capacity across its AI campuses reached 949 MW, backed by a base contract value of about $26.6 billion (€23.1 billion). The company said those leases should produce more than $1.75 billion (€1.5 billion) in average annual net operating income.

The funding for that expansion is also largely secured. Hut 8 closed $7.5 billion (€6.5 billion) in investment-grade project notes for the River Bend and Beacon Point campuses, with no recourse to the parent company. The move fits a broader shift among former Bitcoin miners that are repurposing their infrastructure for AI and high-performance computing, where access to power and room to scale matter most. That trend is also playing out at other miners reworking their business models, as Bitcoin mining difficulty falls 14% as revenues weaken explains.

Why This Matters

For European crypto readers, the update is another example of how quickly a Bitcoin miner can pivot toward AI infrastructure. That shift can make these companies less reliant on the Bitcoin cycle, but it also increases exposure to the risks that come with long buildouts and execution-heavy projects. Hut 8 says River Bend is scheduled to open its first data hall in the second quarter of 2027, while Beacon Point Phase 1 is expected to be power-ready in the first quarter of 2027.

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