Bitcoin Mining Giant Hut 8 Q4 Reveals Massive AI Pivot Despite $301M Loss

While the company posted a steep net loss tied to Bitcoin’s price volatility, revenue surged triple digits as management accelerated its shift toward AI infrastructure and high-performance computing.

The market appeared to look past the headline loss. Shares climbed roughly 2.4% following the announcement, suggesting investors are increasingly focused on the company’s long-term AI roadmap rather than short-term crypto accounting swings.

Revenue Jumps 179%, But Earnings Swing Deeply Negative

For Q4 2025, Hut 8 reported revenue of $88.5 million, up 179% from $31.7 million in the same quarter a year earlier. However, the figure fell short of analyst expectations near $95.6 million.

The bottom line showed a sharp reversal. The company posted a net loss of $301.8 million, compared to a $152.0 million profit in Q4 2024. Adjusted EBITDA came in at negative $347.8 million, down from positive $310.6 million a year earlier.

Despite the steep loss, earnings per share of -$0.1101 beat analyst forecasts, which had projected a wider loss in the range of roughly -$0.12 to -$0.25 per share.

Gross margin improved significantly to 60%, up from 36% in Q4 2024, indicating stronger underlying operating performance even as accounting losses weighed on net results.

Bitcoin Accounting Weighs on Results

Management attributed the majority of the net loss to a $401.9 million unrealized mark-to-market loss on its Bitcoin holdings. The company ended the year with approximately 13,696 BTC valued at around $1.4 billion, down from $1.6 billion in Q3 following a roughly 25% drop in Bitcoin’s price during the quarter.

Executives described this as “Bitcoin noise,” emphasizing that the loss was non-cash and largely accounting-driven. Excluding the unrealized crypto revaluation, operational metrics showed improvement, particularly in margin expansion and segment performance.

Compute Segment Becomes Core Revenue Engine

The company’s Compute segment has now become its primary growth driver. It generated $81.9 million in Q4, accounting for 92% of total quarterly revenue. The segment includes Bitcoin mining, GPU-as-a-Service, and cloud-based infrastructure offerings.

CEO Asher Genoot characterized 2025 as the year of the “power-first” pivot, marking Hut 8’s transition away from being viewed solely as a Bitcoin miner toward becoming a long-term AI infrastructure provider.

Development Pipeline Expands Toward AI Infrastructure

Hut 8’s development pipeline has expanded to 8,500 megawatts of energy capacity, with 330 MW currently under construction. A key project is the 245 MW River Bend campus, designed as a large-scale AI data center.

The River Bend facility is backed by a 15-year, $7.0 billion lease agreement with Fluidstack, supported by Google. Delivery of the project is expected to begin in Q2 2027, positioning Hut 8 as a major player in AI-focused data infrastructure.

Strategic Reset Beyond Bitcoin

The latest results underscore a broader strategic reset. Rather than relying purely on Bitcoin mining revenue, Hut 8 is attempting to build more predictable, long-duration cash flows from AI data centers and high-performance computing contracts.

While crypto volatility continues to introduce earnings swings through mark-to-market adjustments, investors appear increasingly willing to separate operational progress from Bitcoin price fluctuations. The modest post-earnings stock rally reflects growing confidence that the company’s AI infrastructure pivot may define its next growth cycle more than its digital asset treasury.

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