Hut 8 (NASDAQ:HUT) executives used the company’s full-year 2025 earnings call to frame the past year as a strategic reset toward “capital efficiency and durable cash flow,” while also detailing a sharp shift in reported profitability driven largely by changes in the mark-to-market value of its Bitcoin holdings.
Chief Executive Officer Asher Genoot said 2025 was focused on “rebuilding Hut 8 around capital efficiency and durable cash flow,” emphasizing a “power-first” approach to infrastructure development. “We chase megawatts, not chips,” Genoot told investors, describing electrons as strategic assets rather than commodities.
Strategy: From mining exposure to infrastructure-style cash flows
The company’s first AI data center transaction, centered on its River Bend development, was described as a validation of that model. Genoot characterized River Bend as a “true greenfield development,” built from the ground up with a “power-first thinking” framework, and described it as “the first domino” in building an AI infrastructure platform.
Genoot also outlined a multi-phase roadmap for the business:
- Phase 1 (1–2 years): Secure deals, counterparties, financing frameworks, and monetize power capabilities.
- Phase 2 (2–5 years): Value engineer the infrastructure stack to reduce costs per megawatt and improve speed and repeatability.
- Phase 3 (5–10 years): Leverage AI and robotics to reshape infrastructure development, including design optimization and construction workflow automation.
Genoot said the company has been deliberate about what it shares publicly while building out “a fully locked and executable program,” noting it sought to secure demand, financing, execution partners, procurement, and risk allocation before announcing key transactions.
River Bend: Construction cadence, power expansion, and financing terms
On River Bend, Genoot said construction is tracking according to plan, with coordination involving Jacobs Engineering and Vertiv. He also cited “really strong collaboration” with Fluidstack and Anthropic, including multiple weekly working sessions.
Regarding power expansion discussions with Entergy Louisiana, Genoot said “the 1 GW expansion plan at River Bend, the power is there,” describing timing and structuring as the key variables. He said the company is working through different delivery timelines and cost scenarios, including approaches intended to avoid impacting Entergy’s rate base.
In response to an analyst question on construction cadence, management reiterated expectations that the first data center will come online “in the beginning of Q2,” followed by additional data centers coming online “every 60 days thereafter.” Genoot said there are four data centers in the initial phase and that the company built buffer into the timeline, with a goal to deliver earlier if possible.
Management also provided an update on project financing. Genoot said Hut 8 previously targeted 75% to 85% loan-to-cost (LTC) at “SOFR plus 225,” and that this has been “improve[d]” to 90% LTC at “SOFR plus 240,” reflecting an increased leverage level. He said the company is in active negotiations on an operations and service agreement (OSA) with Fluidstack and noted there is time before Hut 8 begins operating the campus.
Financial results: Revenue growth and margin expansion, but net loss on Bitcoin marks
Chief Financial Officer Sean Glennan said fiscal 2025 was defined by margin expansion and operating leverage alongside weaker bottom-line results. Revenue rose 45% to $235.1 million, while cost of revenue increased 24% to $107.8 million, expanding gross margin to 54% from 47%.
Glennan also highlighted fourth-quarter performance versus the prior-year period, saying Q4 2025 revenue grew 179% year-over-year and gross margin expanded from 36% to 60%.
However, Hut 8 reported a net loss of $248 million and an Adjusted EBITDA loss of $135.4 million, compared to net income of $331.4 million and Adjusted EBITDA of $555.7 million in 2024. Glennan attributed the swing largely to a $220 million primarily unrealized mark-to-market loss on the company’s Bitcoin holdings in 2025, versus a $509.3 million gain the prior year.
Segment results discussed on the call included:
- Power layer: Revenue of $23.2 million versus $56.6 million in 2024, reflecting the termination of an Ionic Digital managed services agreement; cost of revenue fell to $20.5 million from $21.5 million.
- Digital infrastructure: Revenue of $9.6 million versus $17.5 million; cost of revenue declined to $8.9 million from $15.6 million. Glennan said margins improved sequentially as Vega entered commercialization and the company transitioned to colocation-based payments from American Bitcoin.
- Compute: Revenue more than doubled to $202.3 million from $80.7 million; cost of revenue increased to $78.4 million from $45.0 million, driven by infrastructure upgrades, higher deployed hash rate, and a full year of steady-state operations at Highrise AI, which added $7.4 million year-over-year. Segment margins expanded from 44% to 61%.
Costs, capital structure, and balance sheet priorities
Genoot addressed higher general and administrative expenses, saying total G&A was about $122.8 million versus $72.9 million in the prior year. Stock-based compensation rose to $57.8 million from $20.8 million, which he linked to scaling investments in engineering, development, and institutional infrastructure. Genoot said cash G&A increased to about $65 million from $52 million, describing the spending as focused on growth rather than “managing the current business.”
On financing and capital structure, Glennan said the American Bitcoin spin-out shifted Hut 8 away from a high cost-of-capital, high CapEx cyclicality business toward a lower cost-of-capital infrastructure model. Looking ahead to 2026, he outlined four key priorities: disciplined equity use, minimizing enterprise risk, diversifying liquidity sources (including private markets), and maintaining a strong balance sheet with a path toward an investment-grade rating.
Genoot also discussed the company’s debt positioning, describing what he called a “clean” balance sheet. He noted a Coatue convertible note at the parent level that he said is “heavily in the money” and “most likely gets converted out this year,” and described other debt as recourse to specific assets rather than the parent company.
Pipeline and market environment: AI focus, with Bitcoin as an alternative use case
Asked how the development pipeline might be allocated between Bitcoin mining and high-performance computing (HPC), Genoot said the company’s core focus is converting sites for AI use cases, while Bitcoin provides an alternative demand source that supports confidence in early development decisions. He cited a development pipeline of 8.5 GW across various stages and said the company views itself as “energy developers first.”
Genoot highlighted Corpus Christi as an example of a site with an approved ERCOT interconnect filed in 2023, which he said has become increasingly valuable amid regulatory changes and tighter grid access. He also said Hut 8 expects 2026 to be about “execution and delivery,” including delivering River Bend on time and on budget, converting pipeline sites into contracted revenue, and maintaining capital discipline.
In closing remarks, executives reiterated that 2026 will be focused on execution, scaling, and repeatability—building on what Genoot called a foundation established in 2025.
About Hut 8 (NASDAQ:HUT)
Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high‐performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose‐built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low‐cost, low‐carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.
