Hut 8, a Bitcoin miner transitioning to AI infrastructure services, released second-quarter earnings results on Tuesday. Revenue climbed to $74.9 million from $41.3 million in the comparable prior-year period, representing 81.4% growth. However, the result fell short of consensus expectations by approximately $1.9 million, or 2.4%, as analysts had anticipated $76.8 million in quarterly revenue.
Earnings performance disappointed on a per-share basis. The company reported a GAAP loss of $1.27 per diluted share, substantially worse than the $0.48 loss that analysts had projected. This represented a significant swing from the prior-year period, when Hut 8 reported earnings of $1.18 per share. On a consolidated basis, the company posted a net loss of $177.1 million compared with net income of $137.5 million a year earlier. The turnaround was driven in part by $138.6 million in unrealized losses on cryptocurrency valuations, whereas the prior-year quarter had benefited from $217.6 million in primarily unrealized gains.
When adjusted for cryptocurrency mark-to-market changes, the company’s EBITDA showed improvement. Adjusted EBITDA excluding such valuation swings rose to $10.4 million from $4.2 million in the prior period. The compute segment dominated operations, generating $72.5 million, or 96.7% of consolidated revenue, spanning ASIC compute, AI cloud, and traditional cloud services. Outside consolidated revenue, the unconsolidated King Mountain joint venture contributed an additional $27 million in colocation revenue and reimbursements.
Hut 8 made significant strides in financing and capacity expansion during the quarter. The company completed $7.5 billion in project financing arrangements, including $3.25 billion in senior secured notes for the River Bend facility and $4.25 billion for Beacon Point Phase 1, both without recourse to the company. Post-quarter, an additional lease agreement expanded the contracted AI data center capacity to 949 MW of IT load, with an estimated base-term contract value of approximately $26.6 billion and expected average annual net operating income exceeding $1.75 billion.
Operational execution emerged as a focal point for management. Chief Executive Officer Asher Genoot emphasized that delivery represents the company’s central priority, with initial data hall deliveries targeted for Q2 2027 at River Bend and Q3 2027 at Beacon Point. The company concluded June with approximately $8.1 billion in unrestricted cash, restricted cash, cash equivalents, and bitcoin holdings. Additionally, Hut 8 refinanced a $200 million bitcoin-backed loan, reducing the interest rate from 9% to 7% and releasing approximately 3,300 bitcoin from collateral obligations.
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