Hut 8 Reports Second Quarter 2025 Results

Executive Summary

• Hut 8 Corp. reported strong financial results for the second quarter of 2025, with revenue increasing to $41.3 million and net income surging to $137.5 million, driven largely by significant gains on digital assets.
• The company announced a strategic merger whereby Gryphon Digital Mining will acquire American Bitcoin in a stock-for-stock transaction, with the combined entity expected to trade on Nasdaq under the ticker "ABTC."
• Hut 8 expanded its strategic Bitcoin reserve to 10,667 BTC (valued at $1.1 billion) and amended its Bitcoin-backed credit facility with Coinbase, doubling the limit to $130 million and securing a fixed interest rate of 9.0%.

Key Details

• Financial Performance (Q2 2025):
  • Revenue: $41.3 million (up from $35.2 million in Q2 2024).
  • Net Income: $137.5 million (compared to a loss of $72.2 million in Q2 2024).
  • Adjusted EBITDA: $221.2 million (compared to a loss of $57.5 million in Q2 2024).
  • Digital Asset Gains: $217.6 million in gains on digital assets.
• Segment Revenue Breakdown:
  • Compute: $34.3 million (Bitcoin Mining, GPU-as-a-Service, Data Center Cloud).
  • Power: $5.5 million (Power Generation and Managed Services).
  • Digital Infrastructure: $1.5 million (ASIC and CPU Colocation).
• American Bitcoin Merger & Financing:
  • Gryphon Digital Mining (Nasdaq: GRYP) announced a go-public transaction to acquire American Bitcoin via a stock-for-stock merger.
  • The combined company will operate under the "American Bitcoin" brand and trade on Nasdaq as "ABTC."
  • American Bitcoin completed an oversubscribed private placement generating approximately $220 million in aggregate gross proceeds (cash and Bitcoin).
  • American Bitcoin is now a consolidated subsidiary and anchor tenant for Hut 8’s Power and Digital Infrastructure segments.
• Operational Updates:
  • Power: Secured five-year capacity contracts with the Ontario Independent Electricity System Operator (IESO) for 310 MW of assets owned by Far North Power Corp. (a Hut 8/Macquarie joint venture), commencing May 1, 2026.
  • Digital Infrastructure: Completed initial energization of "Vega," a 205 MW facility featuring proprietary direct-to-chip liquid cooling. Vega is commercialized to provide up to 205 MW of ASIC Colocation capacity to BITMAIN and American Bitcoin.
  • Pipeline: Total energy capacity under management is 1,020 MW as of June 30, 2025. The development pipeline stands at ~10,800 MW, with ~3,100 MW under exclusivity.
  • AI Development: Advanced AI data center opportunities comprising 430 MW of total capacity, including the River Bend campus in Louisiana.
• Capital Strategy & Balance Sheet:
  • Strategic Bitcoin Reserve: Expanded to 10,667 BTC with a market value of $1.1 billion.
  • Credit Facility: Amended Bitcoin-backed credit facility with Coinbase, increasing capacity from $65 million to $130 million, extending maturity to June 16, 2026, and fixing the interest rate at 9.0% (down from the previous 10.5%-11.5% floating range).

Notable Quotes

• Asher Genoot, CEO: “In the second quarter, we delivered strong revenue and margin performance while advancing a fundamental shift in our asset commercialization profile... driving a meaningful shift from merchant exposure to long-term, contracted fees.”
• Asher Genoot, CEO: “These milestones build on the restructuring of our mining business with the launch of American Bitcoin... American Bitcoin is now a dedicated anchor tenant for our Power and Digital Infrastructure segments.”