TLDR
- Hut 8 disclosed a Q4 net loss of $301.8M, reversing from a $152M gain in Q4 2024, primarily due to $401.9M in unrealized digital asset losses.
- Annual 2025 revenue climbed 45% year-over-year to $235.1M, while gross margins expanded from 47% to 54%.
- Fourth quarter revenue of $88.5M fell short of the $95.6M analyst estimate but increased from $83.5M in Q3.
- The firm is shifting its focus toward AI infrastructure and energy development, boasting a 9,520 MW pipeline.
- HUT shares advanced approximately 2.4% following the earnings release despite underwhelming figures.
Hut 8 disclosed a significant net loss for Q4 2025, primarily attributed to substantial impairments on its bitcoin portfolio during a period when BTC declined approximately 25% in market value.
The company’s Q4 net income registered at -$301.8M, representing a dramatic turnaround from the $50.1M profit recorded in Q3 and the $152M gain posted in Q4 2024.
The primary driver behind this loss was $401.9M in unrealized losses on digital assets. This stands in stark contrast to the same period last year when the company recognized $308.2M in unrealized gains — marking a substantial year-over-year shift.
Fourth quarter revenue reached $88.5M, falling below the $95.6M analyst consensus estimate, though it represented growth from $83.5M in Q3 and $31.7M in Q4 2024.
Despite the substantial reported loss, HUT shares appreciated 2.4% on Wednesday morning, indicating that market participants were focusing beyond the short-term accounting impacts.
For the complete fiscal year, Hut 8 increased revenue 45% to $235.1M from $162.4M in 2024. Gross margin performance also strengthened, expanding from 47% to 54%.
The full-year net loss totaled $248M, contrasting with net income of $331.4M in 2024. This annual reversal was predominantly linked to a $220M unrealized Bitcoin loss in 2025 versus a $509.3M unrealized gain in the previous year.
Adjusted EBITDA for the fourth quarter stood at -$347.8M, declining from $109M in Q3 and $310.6M in Q4 2024.
Compute Segment Drives Top-Line Expansion
The Compute division emerged as the primary growth driver, producing $202.3M in fiscal 2025 revenue. This included $81.8M in Q4 specifically, rising from $70M in Q3 and merely $19.2M in Q4 2024.
Compute revenue encompasses Bitcoin mining operations, GPU-as-a-Service offerings, and Data Center Cloud solutions — the business lines the company is progressively emphasizing.
Power revenue declined to $4.97M in Q4, down from $8.37M in Q3. Digital Infrastructure revenue similarly decreased to $1.64M from $5.11M in the preceding quarter.
As of the December 31, 2025 reporting date, Hut 8 maintained approximately $1.4B in combined cash and bitcoin holdings. This represents a decrease from a market value of $1.6B as of September 30, when the company possessed 13,696 BTC.
Massive 9,520 MW Energy Pipeline in Development
CEO Asher Genoot highlighted Hut 8’s transformation toward a “power-first” operational strategy as the central narrative throughout 2025. The organization divested its legacy ASIC compute operations and sold off a 310 MW portfolio of power generation infrastructure.
The company currently maintains a 9,520 MW energy development pipeline across multiple stages of advancement, including 330 MW currently under construction and 1,020 MW under active management.
River Bend, a strategic facility within the pipeline, is projected to commence delivery operations in Q2 2027.
Hut 8’s equity has surged 298% over the trailing twelve months and currently trades at a market capitalization of $6.4B, with a 52-week trading range spanning $14.28 to $89.34.
EPS registered at -$0.1101, exceeding analyst projections by 11.42%, despite revenue falling short by 5.25%.
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