Hut 8 Reports $134 Million Q1 Loss Amid Strategic Pivot and Bitcoin Market Rally
Bitcoin mining firm Hut 8 has reported a net loss of $134.3 million for the first quarter of 2025, reflecting what the company describes as a strategic phase of reinvestment and repositioning. The results, published Thursday, show a significant year-over-year revenue decline of 58%, bringing quarterly earnings to $21.8 million. Adjusted EBITDA dropped by 60%, landing at negative $117.7 million.
Despite the discouraging financials, Hut 8 leadership is maintaining a long-term view. CEO Asher Genoot framed the losses as part of a deliberate shift:
“As reflected in our results, the first quarter was a deliberate and necessary phase of investment. We believe the returns on this work will become increasingly visible in the quarters ahead.”
A key element of this shift is the launch of American Bitcoin — a new, majority-owned subsidiary that emerged from a strategic transfer of Hut 8's ASIC miners to American Data Centers, Inc. Notably, the venture includes backing from high-profile investors such as Eric Trump and Donald Trump Jr.
The new entity, described by the company as a “pure-play” bitcoin miner, focuses solely on mining and bitcoin accumulation. Hut 8 said that American Bitcoin’s streamlined capital framework is expected to accelerate growth in other core business areas, particularly high-performance computing.
Operational metrics showed a more optimistic picture. Hut 8 reported a 79% increase in total hashrate and a 37% improvement in fleet efficiency, largely attributed to an extensive ASIC miner upgrade completed in early April.
As of March 31, 2025, the company held 10,264 Bitcoin in reserve — valued at $847.2 million — highlighting its ongoing strategy to build long-term digital asset holdings.
Investor sentiment responded positively to the company’s forward-looking initiatives. Hut 8’s stock on the Nasdaq closed up 11.93% at $14.17 on Thursday, buoyed by broader market optimism as Bitcoin surged past the $100,000 resistance level on the same day.