Hut 8 Boosts Hashrate 79% in Q1 2025, Posts $134.3M Loss

Bitcoin mining firm Hut 8 significantly expanded its operational capacity in the first quarter of 2025, reporting a 79% increase in hashrate. This expansion was driven by key investments, including a major upgrade to the firm’s ASIC fleet and the launch of American Bitcoin, a new majority-owned subsidiary backed by members of Donald Trump’s family. The subsidiary is positioning itself to become one of the world’s largest and most efficient pure-play Bitcoin miners while maintaining a strategic BTC reserve. Hut 8’s leadership noted that American Bitcoin may seek to raise additional capital through an IPO and will serve as a capital-efficient platform for expanding into high-performance computing.

Despite this milestone, the company posted a net loss of $134.3 million on revenue of $21.8 million, according to its latest earnings report released on May 8. CEO Asher Genoot described the quarter as a “deliberate and necessary phase of investment,” emphasizing that the financial downturn reflects heavy upfront spending aimed at future growth. “We believe the returns on this work will become increasingly visible in the quarters ahead,” Genoot stated. As of March 31, Hut 8 managed 1,020 megawatts of energy capacity, with rights to scale by another 2,600 MW. The streamlined capital allocation framework made possible by the American Bitcoin launch reinforces our ability to scale lower-cost-of-capital businesses,” Genoot added.

Looking ahead, the company remains focused on several infrastructure initiatives, including energizing the Vega data center, beginning work on the River Bend facility, and advancing utility-scale power development. Genoot believes these steps will help Hut 8 generate near-term cash flow while laying the groundwork for long-term leadership in digital infrastructure. The update comes shortly after rival Core Scientific posted a $580 million quarterly profit, despite missing revenue estimates due to declining mining margins.

In summary, Hut 8's significant increase in hashrate during Q1 2025, despite a substantial net loss, reflects the company's strategic investments in infrastructure and technology. The launch of American Bitcoin and the planned expansion of energy capacity demonstrate Hut 8's commitment to future growth and leadership in the Bitcoin mining industry. The company's focus on sustainable energy usage and strategic investments positions it well for long-term success in the evolving digital infrastructure landscape.