Hut 8 Q2 Revenue Misses, Adjusted EBITDA Beats Estimates

Reuters
Aug 07

Overview

  • Hut 8 Q2 revenue rises to $41.3 mln, but missed analysts' expectations

  • Adjusted EBITDA of $221.2 mln beat estimates, per LSEG data

  • Net income for Q2 was $137.5 mln, reversing loss last year

Outlook

  • Company shifts to long-term contracted fees in Power and Digital Infrastructure

  • Hut 8 secures five-year contracts for 310 MW with Ontario IESO

  • Company advancing AI data center opportunities with 430 MW capacity

  • American Bitcoin to trade on Nasdaq under ticker symbol 'ABTC'

Hut 8 shares gained 4.2% in premarket trading.

Result Drivers

  • LONG-TERM CONTRACTS - Shift from merchant exposure to long-term contracted fees, nearly 90% of energy capacity under management commercialized under agreements, per CEO Asher Genoot

  • AI DATA CENTER DEVELOPMENT - Advanced AI data center opportunities with 430 MW of total capacity, including Vega's initial energization

  • AMERICAN BITCOIN - Restructuring of mining business with launch of American Bitcoin as anchor tenant for Power and Digital Infrastructure segments

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$41.30 mln

$51.20 mln (11 Analysts)

Q2 EPS

$1.18

Q2 Net Income

$137.50 mln

Q2 Adjusted EBITDA

Beat

$221.20 mln

$33.20 mln (9 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

  • Wall Street's median 12-month price target for Hut 8 Corp is $25.50, about 18.9% above its August 6 closing price of $20.69

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