Hut 8 Reports $248 Million Net Loss for 2025 on Digital Asset Write-Downs, Secures $7 Billion AI Infrastructure Lease

Hut 8 Corp. (Nasdaq, TSX: HUT), an energy infrastructure platform integrating power and digital infrastructure, reported a full-year 2025 net loss of $248 million, swinging from net income of $331.4 million in 2024, driven by $220 million in primarily unrealized digital asset losses.

The company concurrently announced the signing of a 15-year, $7 billion lease with Fluidstack for 245 megawatts of AI data center capacity at its River Bend campus, financially backstopped by Google, as Hut 8 advances its transition from bitcoin mining toward a power-focused infrastructure developer with an 8,500 megawatt development pipeline.

Financial Performance and Digital Asset Volatility

Revenue for the full year 2025 rose to $235.1 million, up from $162.4 million in the prior year, comprising $23.2 million from power generation and managed services, $9.6 million from digital infrastructure colocation, and $202.3 million from compute operations including ASIC compute, AI cloud, and traditional cloud services.

The company’s net loss of $248 million contrasted sharply with net income of $331.4 million in 2024, primarily reflecting $220 million in unrealized losses on digital assets compared to $509.3 million in unrealized gains the previous year. Adjusted EBITDA for the full year came in at negative $135.4 million, versus positive $555.7 million in 2024, illustrating the impact of mark-to-market swings tied to bitcoin price movements.

For the fourth quarter of 2025, revenue climbed to $88.5 million from $31.7 million in the same period of 2024, while net loss reached $301.8 million compared to net income of $152.0 million a year earlier, largely due to $401.9 million in primarily unrealized digital asset losses.

As of December 31, 2025, Hut 8 and its majority-owned subsidiary American Bitcoin Corp. held approximately $1.4 billion in combined cash and bitcoin reserves, including $899.3 million attributable to Hut 8 and $472.6 million attributable to American Bitcoin.

Strategic Pivot to AI Infrastructure

The headline financial losses coincided with significant strategic developments as Hut 8 executes a transition from bitcoin mining toward a power-first infrastructure model focused on high-velocity origination, greenfield development, and capital-efficient execution.

During the quarter, the company signed a 15-year lease with Fluidstack for 245 megawatts of IT capacity at its River Bend campus in Louisiana, representing $7 billion in base-term contract value. The lease payments and related pass-through obligations for the base term are financially backstopped by Google, providing credit support for the agreement. The deal grants Fluidstack a right of first offer for up to an additional 1,000 megawatts of IT capacity at future expansion phases at River Bend, subject to power expansion at the site.

The River Bend transaction followed a previously announced partnership with Anthropic and Fluidstack to accelerate the deployment of hyperscale AI infrastructure in the United States, under which Hut 8 will develop and deliver at least 245 megawatts and up to 2,295 megawatts of AI data center infrastructure.

Development Pipeline and Project Execution

Hut 8 reported its development pipeline totaled 8,500 megawatts as of December 31, 2025, including 330 megawatts under construction and more than 1,230 megawatts under development. The pipeline composition includes 5,185 megawatts of energy capacity under diligence, 1,755 megawatts under exclusivity, 1,230 megawatts under development, and 330 megawatts under construction. The figure excludes an additional 1,000 megawatts of potential expansion capacity at River Bend, subject to power availability at the site.

The company energized Vega, a 205 megawatt Tier 1 data center that commercializes a next-generation form factor for ASIC compute. The facility features a proprietary, rack-based, direct-to-chip liquid cooling system designed by Hut 8 to support ASIC deployments at densities of up to 180 kilowatts per rack.

Hut 8 also announced plans to develop four new sites with more than 1,500 megawatts of total capacity across the United States, positioning the company to meet growing demand from energy-intensive use cases while scaling and diversifying its platform across strategic energy markets.

Portfolio Restructuring and Capital Formation

Hut 8 executed several transactions to refine its portfolio structure and streamline capital allocation. The company entered into a definitive share purchase agreement to sell its 310 megawatt portfolio of natural gas-fired power plants in Ontario to TransAlta Corporation. The transaction, which closed in February 2026, followed a multi-phase program through which Hut 8 stabilized and strengthened the portfolio following its acquisition out of bankruptcy, including securing five-year capacity contracts with the Ontario Independent Electricity System Operator. Proceeds from the sale are intended for general corporate purposes, including execution of the company’s data center development pipeline.

The company launched and completed the public listing of American Bitcoin Corp., a majority-owned bitcoin accumulation subsidiary that can scale independently and provide Hut 8 stockholders with long-term exposure to potential bitcoin upside.

On the financing front, Hut 8 established new credit facilities including a $200 million revolving credit facility with Two Prime and upsized its Coinbase revolving credit facility to $200 million, bringing total credit capacity to $400 million at a weighted average cost of capital of 8.5%. The company also secured up to 85% loan-to-cost in project-level financing for River Bend, expected to be funded by J.P. Morgan as lead left loan underwriter and loan structurer, and Goldman Sachs & Co. LLC, both of whom are expected to serve as loan underwriters.

Institutional ownership of Hut 8 deepened during the year, increasing from approximately 55% at year-end 2024 to approximately 70% at year-end 2025.

Market Performance and Outlook

Shares of Hut 8 were trading above $60 on February 25, 2026, up approximately 1.5% on the day. The stock briefly touched a more than four-year high of $66 in January and has gained more than 300% over the past year, even as bitcoin has fallen approximately 27% over the same period.

Asher Genoot, CEO of Hut 8, stated: “Over the past two years, we have rebuilt Hut 8 around a power-first strategy centered on high-velocity origination, disciplined greenfield development, first-principles infrastructure design, and capital-efficient execution. In 2025, this work translated into tangible growth and commercial progress across our platform.”

Regarding future execution, Genoot added: “2026 is about execution. We aim to advance River Bend for delivery beginning in Q2 2027 while accelerating conversion across our broader pipeline. With enhanced capital allocation clarity following the carveout of our legacy ASIC compute business and the sale of our 310-megawatt portfolio of power generation assets, we believe we are positioned to scale with greater discipline, compound long-term value for shareholders, and build an enduring, generational business at the intersection of energy and technology.”

FAQ: Understanding Hut 8’s Financial Results and Strategic Transition

Q: Why did Hut 8 report a net loss despite revenue growth?

A: Hut 8’s $248 million net loss for 2025 was primarily driven by $220 million in unrealized losses on digital assets, reflecting mark-to-market accounting treatment of its bitcoin holdings amid declining cryptocurrency prices. This compares to $509 million in unrealized gains in 2024 when bitcoin prices were rising. Revenue grew 45% to $235 million, but the non-cash digital asset write-downs overwhelmed operating profitability.

Q: What is the significance of the $7 billion Fluidstack lease agreement?

A: The 15-year, 245 megawatt lease with Fluidstack at the River Bend campus represents Hut 8’s first major AI infrastructure transaction and validates its power-first strategy. The agreement is financially backstopped by Google, providing credit support, and includes a right of first offer for up to an additional 1,000 megawatts. The deal positions Hut 8 to generate stable, predictable long-term cash flows from AI compute infrastructure rather than volatile bitcoin mining revenue.

Q: How large is Hut 8’s development pipeline and what does it comprise?

A: As of December 31, 2025, Hut 8’s development pipeline totaled 8,500 megawatts across various stages: 330 megawatts under construction, 1,230 megawatts under development, 1,755 megawatts under exclusivity, and 5,185 megawatts under diligence. This excludes an additional 1,000 megawatts of potential expansion capacity at River Bend. The pipeline spans power generation, digital infrastructure, and compute capacity designed to support AI and other energy-intensive applications.

Q: What is American Bitcoin Corp**.** and how does it relate to Hut 8?

A: American Bitcoin Corp. is a majority-owned subsidiary of Hut 8 that was publicly listed in 2025. It serves as a dedicated bitcoin accumulation vehicle that can scale independently while providing Hut 8 stockholders with long-term exposure to potential bitcoin upside. As of December 31, 2025, American Bitcoin held $472.6 million in bitcoin reserves, separate from Hut 8’s $899.3 million in cash and bitcoin holdings.