Publicly traded Bitcoin miner Hut 8 Corp. (HUT) reported a significant net loss for the fourth quarter of 2025, driven primarily by a massive write-down on its Bitcoin holdings. The company posted a Q4 net loss of $301.8 million, a stark reversal from a net profit of $152 million in the same quarter the previous year.
The primary driver of the loss was $401.9 million in unrealized losses on digital assets, a dramatic swing from the $308.2 million in unrealized gains recorded in Q4 2024. This write-down coincided with a quarter where Bitcoin's price fell approximately 25%. For the full fiscal year 2025, Hut 8 reported a net loss of $248 million, compared to a net income of $331.4 million in 2024, with the annual swing largely attributed to a $220 million unrealized Bitcoin loss versus a $509.3 million gain the prior year.
Despite the headline loss, the company showed underlying operational growth. Q4 revenue reached $88.5 million, missing analyst expectations of $95.6 million but growing from $83.5 million in Q3 and $31.7 million in Q4 2024. Full-year 2025 revenue grew 45% year-over-year to $235.1 million, with gross margins improving from 47% to 54%.
The standout performer was the Compute segment, which generated $202.3 million in revenue for the full year, including $81.8 million in Q4 alone. This segment encompasses Bitcoin mining, GPU-as-a-Service, and Data Center Cloud solutions. As of December 31, 2025, Hut 8 held approximately $1.4 billion in combined cash and Bitcoin reserves, down from a market value of $1.6 billion as of September 30 when it held 13,696 BTC.
CEO Asher Genoot highlighted the company's strategic pivot toward a "power-first" strategy and AI infrastructure. Hut 8 has a 9,520 MW energy development pipeline, with 330 MW under construction and 1,020 MW under management. A key initiative is the River Bend facility, expected to begin delivery in Q2 2027. The company also signed a significant 15-year lease for 245 megawatts of AI data center capacity at River Bend, valued at $7 billion, with payments financially backstopped by Google.
In a related move, Hut 8 completed the sale of a 310 MW natural gas portfolio in February and launched American Bitcoin Corp. as a separately listed vehicle focused on Bitcoin accumulation. Despite the quarterly loss, HUT stock rose approximately 2.4% on the day of the announcement, and the stock has gained 298% over the past year, trading at a market cap of $6.4 billion.
