Hut 8 (HUT) Q1 2025 earnings summary

Executive summary

• Completed a strategic carve-out, launching American Bitcoin as a majority-owned subsidiary to decouple mining from core infrastructure, streamline capital allocation, and accelerate growth in power and digital infrastructure.

• Q1 2025 marked a deliberate investment phase, including a major ASIC fleet upgrade, increasing hashrate to 9.3 EH/s and improving fleet efficiency to 20 J/TH, positioning for long-term value creation.

• Total energy capacity under management reached 1,020 MW, with a development pipeline of approximately 10.8 GW and 2.6 GW under exclusivity as of March 31, 2025.

• Focused on building a utility-scale power origination pipeline and advancing data center projects, notably Vega and Riverbend, with over 70% of Vega's budgeted capex incurred by March 31, 2025.

• Strategic priorities include maximizing returns by allocating resources across power, digital infrastructure, and compute, with flexibility to transition assets to higher-value use cases such as AI and high-performance computing.

Financial highlights

• Q1 2025 revenue was $21.8 million, down from $51.7 million year-over-year, with $4.4 million from Power, $1.3 million from Digital Infrastructure, and $16.1 million from Compute.

• Net loss for Q1 2025 was $134.3 million, compared to net income of $250.7 million in Q1 2024, driven by $112.4 million in digital asset losses versus $274.6 million in gains last year.

• Adjusted EBITDA was ($117.7) million, down from $297.0 million in Q1 2024, reflecting lower revenue and higher energy costs per MWh ($51.71 vs. $40.06 year-over-year).

• Cost to mine a Bitcoin (excluding hosted facilities) was $58,757, with 167 Bitcoin mined in Q1 2025 versus 716 in Q1 2024; weighted average revenue per Bitcoin mined was $92,224.

• Ended quarter with 10,264 Bitcoin in reserve, valued at $847.2 million.

Outlook and guidance

• Management expects step-change improvement in mining economics and top-line performance in Q2 as the new ASIC fleet is fully deployed and the Vega site is energized.

• Continued focus on capital-efficient growth, with major investments in Vega and Riverbend data centers and additional AI data center projects in the pipeline, potentially adding over 230 MW of IT load.

• Anticipate more predictable, contracted revenue streams from new commercial agreements with American Bitcoin.

• Strategic priorities for 2025 include fortifying risk management, expanding market access and liquidity, and maximizing portfolio yield by transitioning assets to higher-return use cases.