Hut 8 Reports Q4 Net Loss of $279.7 Million, Announces $7 B AI‑Data‑Center Lease
Toronto‑based Bitcoin miner Hut 8 Mining Corp. (NASDAQ:HUT) disclosed a steep fourth‑quarter loss on Wednesday while also revealing a long‑term contract to supply 245 MW of AI‑focused data‑center capacity valued at roughly $7 billion.
Financial snapshot – Q4 2025
| Metric | Q4 2025 | Q4 2024 (YoY) |
|---|---|---|
| Net loss | $279.7 M | $152.2 M profit |
| Revenue | $88.5 M | $31.7 M |
| Compute (mining) revenue | $81.9 M | $19.2 M |
| Digital‑asset loss (fair‑value adjustment) | $401.9 M | $308.2 M gain |
| Cash & Bitcoin reserves (EoY) | ~$1.4 B | — |
| Revolving credit facility | Up to $400 M | — |
The company’s earnings release highlighted that the bulk of the loss stems from a $401.9 million write‑down on its digital‑asset holdings, reversing a $308.2 million gain reported a year earlier. Mining‑related revenue grew dramatically, more than quadrupling year‑over‑year, but it was insufficient to offset the asset‑valuation hit.
Strategic move: $7 billion AI data‑center lease
During the quarter, Hut 8 signed a 15‑year lease for 245 MW of capacity at its River Bend campus. The arrangement, backed financially by Google, is valued at approximately $7 billion and positions the firm to host AI workloads alongside its Bitcoin mining operations. The deal is part of a broader shift among publicly traded miners toward high‑performance computing (HPC) and AI‑centric infrastructure, which investors are beginning to value as a growth catalyst.
Key points of the lease:
- Duration: 15 years, providing a stable, long‑term revenue stream.
- Capacity: 245 MW of AI‑grade power, leveraging the same low‑cost, carbon‑efficient energy sources that power Bitcoin mining.
- Financial backing: Google will underwrite lease payments, mitigating credit risk for Hut 8 and signaling confidence from a major cloud provider.
- Strategic fit: Enables the repurposing of excess mining capacity for AI workloads, potentially diversifying cash flow away from Bitcoin price volatility.
Market context
Bitcoin’s price has slipped from roughly $87,500 at the start of 2025 to about $68,150 at the time of reporting, according to CoinGecko data. Despite this dip, the majority of the top‑tier mining stocks have delivered solid year‑to‑date returns:
- TeraWulf (WULF): >50 % gain
- Riot Platforms (RIOT): ~30 % gain
- Hut 8 (HUT): ~29 % rise
The divergence between Bitcoin price performance and miner equity appreciation suggests that investors are rewarding companies for ancillary strengths—particularly energy‑cost advantages, scalable infrastructure, and emerging AI/HPC initiatives.
Other miners are pursuing similar strategies. TeraWulf recently secured a $3.7 billion AI colocation lease with Fluidstack, partially funded by Google. Riot Platforms faces activist pressure to accelerate its AI/HPC rollout, which could unlock up to $21 billion of equity value. A wave of “dual‑use” pivots is also evident among CleanSpark, Core Scientific, Hive Digital, and MARA Holdings.
Recent corporate actions
- Asset divestiture: In February, Hut 8 completed the sale of a 310 MW natural‑gas portfolio, further streamlining its power mix.
- New vehicle: The firm launched “American Bitcoin Corp.” as a separately listed entity dedicated to Bitcoin accumulation, broadening its balance‑sheet options.
- Bitcoin treasury: Hut 8 now holds roughly 13,696 BTC, ranking it among the largest publicly disclosed Bitcoin holders.
Analyst takeaways
- Losses are largely accounting‑driven. The $401.9 million digital‑asset write‑down reflects market‑price adjustments rather than operational cash‑flow deficits. Mining cash generation has improved markedly, as shown by the rise in compute revenue.
- AI lease could offset crypto‑price risk. The $7 billion, Google‑backed commitment provides a predictable, long‑term earnings component that is less correlated with Bitcoin’s price swings.
- Balance‑sheet strength. With roughly $1.4 billion in cash and Bitcoin reserves and a sizable revolving credit line, Hut 8 possesses ample liquidity to navigate market turbulence and fund its AI expansion.
- Valuation shifting from pure mining to data‑center play. As the sector’s narrative expands, investors appear to reward firms that can monetize their low‑cost power assets for both crypto and AI workloads.
Outlook
If Bitcoin’s price stabilizes or rebounds, Hut 8’s mining margins should improve further, complementing the emerging AI revenue stream. The firm’s ability to execute the AI lease—especially the integration of AI workloads without compromising mining efficiency—will be a critical metric to watch over the next 12‑18 months. Meanwhile, the market’s positive reception to similar dual‑use strategies suggests that Hut 8’s share price could continue to benefit from the “energy‑infrastructure dividend” even in a low‑BTC environment.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research.
Source: https://cointelegraph.com/news/hut-8-swings-to-248m-loss-as-7b-ai-data-center-lease-anchors-pivot-from-bitcoin-mining?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
