Hut 8 reported a fourth quarter 2025 loss after unrealized losses on digital assets wiped out operating gains, even as compute revenue climbed sharply year over year.
Key Takeaways
- Hut 8 posted a Q4 net loss of $301.8 million, driven largely by $401.9 million in unrealized losses on digital assets.
- Q4 revenue was $88.5 million, below the $95.6 million analyst consensus, but higher than both the prior quarter and the year ago period.
- The company is pushing deeper into AI infrastructure and energy, highlighted by a 15 year, 245 MW IT lease tied to its River Bend campus.
- Hut 8 ended 2025 with about $1.4 billion in cash and Bitcoin reserves, and expanded its financing options through new and enlarged credit facilities.
What Happened?
Hut 8 swung to a loss in the December 2025 quarter as Bitcoin prices fell roughly 25 percent during the period, triggering a sizable accounting hit on the company’s digital asset holdings. Investors appeared to look through the non cash impact, with the stock up about 2.4 percent in morning trading after the results.
$HUT (Hut 8) #earnings are out: pic.twitter.com/0iBXThNreg
— The Earnings Correspondent (@earnings_guy) February 25, 2026
Q4 results were dominated by a digital asset swing
Hut 8 reported revenue of $88.5 million for the three months ended December 31, 2025, up from $31.7 million a year earlier and $83.5 million in the prior quarter. Still, the print came in below expectations of $95.6 million.
The bigger story was profitability. Hut 8 reported a net loss of $301.8 million in Q4, compared with net income of $152.0 million in the year ago quarter. The quarter included $401.9 million of primarily unrealized losses on digital assets, versus $308.2 million of primarily unrealized gains a year earlier. Adjusted EBITDA was negative $347.8 million, down from $310.6 million in Q4 2024.
Compute led revenue growth while power and infrastructure softened
By segment, Compute remained the standout. Hut 8 reported $81.9 million in Q4 compute revenue, up from $19.2 million in Q4 2024 and $70.0 million in Q3 2025. Management has positioned compute as a mix of Bitcoin mining, GPU services, and data center cloud solutions.
Other segments were weaker in the quarter. Power revenue was $5.0 million, down from $8.37 million in Q3. Digital infrastructure revenue was $1.64 million, also down from $5.11 million in the prior quarter.
Full year 2025 revenue rose, but the bottom line flipped negative
For the full year 2025, Hut 8 reported revenue of $235.1 million, up from $162.4 million in 2024. One report also cited an improvement in gross margin to 54 percent from 47 percent.
Even with higher revenue, the company posted a full year net loss of $248.0 million, compared with net income of $331.4 million in 2024. The annual result included $220.0 million of primarily unrealized losses on digital assets, versus $509.3 million of primarily unrealized gains in the prior year. Full year adjusted EBITDA was negative $135.4 million.
AI infrastructure push takes center stage at River Bend
Beyond the quarter, Hut 8 highlighted a major commercial step in AI data centers. The company signed a 15 year lease with Fluidstack for 245 MW of IT capacity at the River Bend campus. Hut 8 said the base term represents $7.0 billion in contract value, and that the base term payments and pass through obligations are financially backstopped by Google.
Hut 8 also disclosed a partnership involving Anthropic and Fluidstack to accelerate hyperscale AI infrastructure in the United States. Under that arrangement, Hut 8 expects to develop and deliver at least 245 MW and up to 2,295 MW of AI data center infrastructure. Fluidstack also holds a right of first offer for up to 1,000 MW of additional IT capacity at future River Bend expansion phases, subject to power expansion at the site.
Pipeline scale up and capital moves
Hut 8 ended 2025 with an 8,500 MW development pipeline across multiple stages, including 330 MW under construction. Other coverage described the pipeline as 9,520 MW, reflecting a broader framing of total capacity, but the company’s year end disclosure highlighted 8,500 MW as of December 31, 2025.
On the capital side, Hut 8 said it had about $1.4 billion of cash and Bitcoin held in reserve at year end. It also expanded liquidity through a new $200 million revolving credit facility with Two Prime and the upsizing of a Coinbase revolving credit facility to $200 million, bringing total credit capacity to $400 million at a weighted average cost of capital of 8.5 percent. For River Bend, the company described plans for up to 85 percent loan to cost project level financing expected to be funded by J.P. Morgan as lead left loan underwriter and loan structurer and Goldman Sachs as an expected underwriter.
The company also closed the sale of a 310 MW portfolio of natural gas fired power plants in Ontario to TransAlta in February 2026, and launched American Bitcoin Corp., a majority owned Bitcoin accumulation subsidiary.
CoinLaw’s Takeaway
I found this quarter to be a clean reminder that crypto accounting volatility can drown out what is happening in the real business. In my experience, markets often punish miners for looking like pure Bitcoin bets, so Hut 8’s move toward power, data centers, and long term AI contracts is the kind of shift that can change how investors value the company over time. The River Bend lease, the Google backstop, and the focus on project financing all point to a strategy that is trying to look more like infrastructure and less like a trading proxy for Bitcoin. If Hut 8 can execute on delivery timelines and keep funding costs under control, this pivot could end up being the more important story than any single quarter of unrealized gains or losses.
