Hut 8 Boosted by Next-Gen Bitcoin Rigs and Revenue Diversification, Analysts Say

Hut 8 Corp HUT stock tanked in early Tuesday trading after the company reported mixed second-quarter earnings. The stock price saw redemption on Wednesday.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Benchmark analyst Mark Palmer reiterated a Buy rating to Hut 8 and set a price target of $17.

Needham analyst John Todaro maintained a Buy rating on Hut 8 with a price target of $15.

Benchmark: Hut 8 Corp’s second-quarter revenue of $33.5 million fell well short of the consensus estimate of $48.0 million. Its adjusted EBITDA missed the consensus estimate by a wide margin due to a $71.8 million loss on its bitcoin holdings based on their market value at the end of the quarter versus their market value at the end of the first quarter, Palmer noted.

However, without the impact of Hut 8 Corps marking-to-market, the adjusted EBITDA would be $14.3 million, higher than the Street estimate of $9 million.

The analyst attributed the market’s initially adverse reaction to the second-quarter financial results to the company’s headline top- and bottom-line misses versus Street estimates.

He noted that a closer evaluation of its print, especially when viewed within the context of CEO Asher Genoot’s commentary during this morning’s earnings call, yields several promising takeaways.

Since early this year, Hut 8 has bucked the trend in the bitcoin mining space by holding off on ordering new mining rigs, opting instead to focus on building out its power footprint and restructuring actions, Palmer said.

Palmer added that the prospect of combining Hut 8 Corp’s reduced costs with the efficiency of next-gen mining rigs significantly outweighs the impact of a subpar quarterly print.

Palmer projected third-quarter revenue of $44.6 million and adjusted EBITDA of $20.6 million.

Needham: The re-rating reflected revenue diversification, lowering costs, and improving fleet operations, which should enhance mining efficiency, operational leverage, and a cleaner balance sheet than market warrants, given large bitcoin holdings.

Todaro posted a modest adjusted EBITDA beat, driven by top-line upside and a higher proportion of non-cash stock-based compensation (SBC) versus cash general and administrative expenses (G&A).

Revenue of $35 million missed Needham’s estimates of $44 million. Adjusted EBITDA of $14 million beat the Needham estimate of $6 million.

Todaro flagged the company’s focus on developing an attainable 200MW site for High-Performance Computing in the near term versus 1GW+.

Hut 8 Corp has already had conversations with potential HPC customers, including hyperscalers, whereby the customer is vetting current and pipeline sites.

Whether it is a new ground-up build or retrofit, Todaro noted that an HPC site will come in the first quarter of 2026 at the earliest. The analyst noted multiple expansions after he received additional specifics on fiscal 2025 hash growth and a hyperscaler Letter of Intent.

Todaro projected third-quarter revenue of $51 million and adjusted EBITDA of $11 million.

Price Action: HUT stock traded higher by 1.73% at $11.15 at the last check on Wednesday.

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