Hut 8's Hashrate Surges 79% Amid $134.3M Loss

Cryptocurrency mining firm Hut 8 reported a significant increase in its hashrate by 79% during the first quarter of the year. This growth, however, came at a cost, as the company posted a net loss of $134.3 million despite generating $21.8 million in revenue. The substantial loss was attributed to large-scale investments made by the firm, according to Hut 8’s CEO, Asher Genoot.

Genoot explained that the first quarter was a period of deliberate and necessary investment, aimed at positioning the company for future growth. He expressed confidence that the returns on these investments would become more visible in the coming quarters.

Hut 8’s operations reached a total energy capacity of 1,020 megawatts as of March 31, sufficient to power over 800,000 average homes in the United States. The company also has the right to scale up its operations by an additional 2,600 MW, indicating a strong commitment to expanding its mining capabilities.

The financial results reflect Hut 8’s strategic investments, including the upgrade of its application-specific integrated circuit (ASIC) fleet and the launch of its majority-owned subsidiary, American Bitcoin. American Bitcoin, announced at the end of March, aims to become the world’s largest and most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve.

American Bitcoin has plans to raise additional capital, including through an initial public offering. Genoot highlighted that the launch of American Bitcoin has streamlined the company’s capital allocation framework, enabling it to scale lower-cost-of-capital businesses such as high-performance computing.

Looking ahead, Hut 8’s CEO outlined the company’s plans for 2025, which include the energization of the Vega data center, the initial sitework at the River Bend data center, and the development of the firm’s utility-scale power portfolio. Genoot believes these initiatives will accelerate the company’s ability to generate resilient near-term cash flows and build enduring leadership in next-generation digital infrastructure markets.