Hut 8 Corp., a prominent Bitcoin (BTC) mining company, reported a steep first-quarter net loss of $134.3 million—a significant reversal from a $250.7 million profit the previous year. The company's revenue fell by nearly 58% year-over-year, landing at $21.8 million. CEO Asher Genoot attributed the downturn to the ongoing impact of the prior year’s Bitcoin halving, which reduced mining rewards, combined with costly equipment upgrades and increased operational downtime.
Despite these headwinds, Hut 8 increased its hashrate by 79% during the quarter and expanded energy capacity to 1,020 megawatts. The company launched a new subsidiary, American Bitcoin Corp., aiming to scale mining operations and is preparing for an IPO. The move to acquire a majority stake in American Data Centers Inc.—backed by Eric Trump and Donald Trump Jr.—and the commitment to support AI workloads at its Louisiana sites reflect a broader industry trend of mining diversification.
The market responded positively to Hut 8’s new venture, with its shares surging 17% on the day of the announcement, although they remained down 38% year-to-date. While recent losses stem from deliberate capital expenditures to drive future growth, Hut 8 expects benefits from these investments to materialize in the coming quarters. The company continues to prepare new infrastructure projects and expand its high-performance computing capabilities to support sustained growth.