Strategy vs. Hut 8: Which Bitcoin Stock Has the Stronger Upside Now?

Strategy MSTR and Hut 8 Corp. HUT are two prominent Bitcoin-linked equities, offering exposure through distinct approaches — Strategy via large-scale Bitcoin purchases funded by capital markets, and Hut 8 through mining and a digital infrastructure platform.

Both businesses are deeply tied to Bitcoin price movements, and accumulating and holding BTC is a key part of their long-term strategy.

Comparing them is particularly relevant now, as Bitcoin's volatility and institutional momentum are increasing, further reinforcing their strong correlation with BTC price swings. So, which stock offers greater upside, Strategy or Hut 8? Let’s find out.

The Case for MSTR Stock

Strategy has transformed into a Bitcoin-focused treasury company by combining large-scale Bitcoin accumulation with capital markets innovation. Its core strategy is centered on increasing Bitcoin Per Share by leveraging traditional financing.

MSTR remains the largest corporate holder of Bitcoin, owning about 762,099 BTC as of March 30, 2026. This highlights its strong conviction in Bitcoin as a core treasury asset. The company continues to steadily increase its holdings, recently adding another 1,031 BTC, further strengthening its leading position in the space. Its strategy emphasizes long-term Bitcoin accumulation, supported by fair value accounting and strong institutional recognition (credit rating, MSCI index inclusion).

MSTR has built a strong funding strategy over time by using multiple financial instruments to raise capital. In 2025 alone, the company raised about $25.3 billion through equity, preferred stock and “digital credit” offerings. Its newer instruments, such as STRC, are designed to give investors yield-based exposure to Bitcoin, helping broaden participation while creating a scalable way to fund further Bitcoin purchases. To strengthen this approach, the company recently announced a $42 billion at-the-market program, split evenly between common stock and preferred stock, providing significant flexibility for future capital raising.

The balance sheet is heavily tied to Bitcoin, with digital assets valued at $58.9 billion by year-end 2025. Despite having $8.2 billion in debt, its leverage remains controlled, backed by a solid cash reserve of $2.25 billion. This provides multi-year coverage for interest and dividend payments. Strategy’s valuation depends heavily on Bitcoin’s price, making it a leveraged investment on BTC.

The Case for HUT Stock

Hut 8 is transforming from a traditional Bitcoin miner into a diversified, power-first digital infrastructure platform. By integrating Bitcoin holdings, AI compute and energy assets, the company is building a more resilient business model. As of March 30, 2026, it holds 13,696 BTC, ranking ninth among Bitcoin treasury companies.

The company benefits from a “power-first” strategy, using its energy assets to efficiently support both Bitcoin mining and AI-driven compute demand. HUT has built a large 8.5 GW development pipeline as of Dec. 31, 2025, and secured long-term, creditworthy contracts, including a 15-year, $7 billion AI data center lease with Fluidstack (backstopped by Google), ensuring durable cash flows. Its compute segment is the primary growth driver, with revenues more than doubling in 2025.

Hut 8’s strategic pivot toward AI infrastructure is further evidenced by the River Bend campus and Vega data center, which utilize high-density liquid cooling technology. Partnerships with firms like Anthropic and Fluidstack position the company to benefit from volatile mining revenues to predictable, long-duration contracted infrastructure income. Additionally, the spin-off of American Bitcoin allows for more focused scaling of its Bitcoin operations while unlocking capital for AI expansion.

However, Hut 8 continues to face earnings volatility, largely due to Bitcoin price fluctuations and significant unrealized losses recorded in 2025. In addition, the business is exposed to execution risks tied to large-scale AI infrastructure projects, along with regulatory uncertainties and high capital requirements.

How Do Estimates Compare for MSTR & HUT?

The Zacks Consensus Estimate for MSTR’s 2026 earnings is pegged at $107.99 per share, stable over the past 30 days but more than doubling over the past 60 days. The estimate marks a significant turnaround from the previous year's loss of $15.23 per share.

MSTR Earnings Estimate Trend

Image Source: Zacks Investment Research

In contrast, Hut 8 is still expected to remain loss-making, with its 2026 estimate pegged at a loss of $1.23 per share. The estimate has worsened by 20 cents over the past 30 days and shows a similar downward revision trend over 60 days. However, on a year-over-year basis, the company is expected to narrow its losses from $2.14 per share.

HUT Earnings Estimate Trend

Image Source: Zacks Investment Research

Stock Performance & Valuation: MSTR vs. HUT

In the past month, MSTR has performed considerably better than HUT, with its shares declining 8.4% compared to a 10.1% drop for Hut 8.

HUT’s weak stock performance is largely due to its heavy reliance on power infrastructure and regulatory uncertainties, with large AI investments acting as near-term liabilities until monetization.

On the other hand, MSTR’s relatively strong performance is driven by steady Bitcoin accumulation, improved access to capital markets and the expansion of digital credit instruments for future fundraising. Although the stock has declined due to a sharp drop in Bitcoin prices, continued Bitcoin purchases help maintain investor confidence.

MSTR vs. HUT Stock Performance

Image Source: Zacks Investment Research

Strategy trades at a more modest 0.89x Price/Book ratio compared to Hut 8 at 3.09x, indicating a relatively lower valuation risk. While both stocks carry a Value Score of F, the gap reflects differing investor expectations. Hut 8’s premium is largely driven by anticipated growth from its AI infrastructure pivot, whereas Strategy’s valuation remains more closely aligned with the underlying value of its Bitcoin holdings, offering a more direct and realistic exposure to BTC.

MSTR vs. HUT Valuation

Image Source: Zacks Investment Research

Conclusion: MSTR Has the Edge Right Now

Strategy offers a stronger upside backed by aggressive Bitcoin accumulation, improving earnings visibility and a disciplined capital strategy at a relatively lower valuation. In contrast, Hut 8 faces near-term headwinds from capital-intensive AI expansion and earnings volatility. For investors seeking leveraged Bitcoin exposure, MSTR appears the more compelling buy today.

Currently, MSTR sports a Zacks Rank #1 (Strong Buy), while HUT has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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