Hut 8 Corp. Reports Significant Revenue Decline and Net Loss in Q1 2025

Hut 8 Corp. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $21.8 million, down from $51.7 million in the same period last year. The decrease was primarily driven by a substantial drop in revenue from its Compute segment, which includes Bitcoin mining, where revenue decreased by $16 million to $16.1 million. The Power segment also saw a decline, with revenue dropping from $9.9 million to $4.4 million, largely due to the termination of a managed services agreement. Overall, the company recorded a net loss of $134.3 million, compared to a net income of $250.7 million in Q1 2024.

The company's operational metrics reflected the challenges faced during the quarter. The number of Bitcoin mined decreased significantly to 167 from 716 year-over-year, attributed to reduced mining activity during a planned fleet upgrade and increased network difficulty following the Bitcoin halving event in April 2024. The cost to mine a Bitcoin, excluding hosted facilities, rose sharply to $58,757, compared to $20,419 in the previous year, driven by higher energy costs and fixed expenses associated with the fleet upgrade.

Strategically, Hut 8 launched American Bitcoin, a majority-owned subsidiary formed by contributing its ASIC miners to American Data Centers Inc. This move aims to position American Bitcoin as a leading player in the Bitcoin mining sector. Additionally, the company has made progress in upgrading its miner fleet, which is expected to enhance operational efficiency moving forward. The company also secured a new site in Louisiana for its AI data center pipeline, further expanding its infrastructure capabilities.

In terms of financial health, Hut 8's cash and restricted cash increased to $108.4 million as of March 31, 2025, up from $85.0 million at the end of 2024. The company raised $112 million through an at-the-market offering during the quarter, which contributed to its liquidity position. However, the company also reported a significant increase in operating expenses, particularly in general and administrative costs, which rose to $21.1 million from $20.0 million, reflecting investments in growth and strategic initiatives.

Looking ahead, Hut 8's management expressed cautious optimism, emphasizing the importance of market conditions, particularly the price of Bitcoin and energy costs, in shaping future performance. The company aims to leverage its strategic Bitcoin reserve and operational upgrades to navigate the challenging market landscape and enhance profitability in the coming quarters.