Hut 8 Q2 revenue misses, adjusted EBITDA beats estimates

Overview

• Hut 8 Q2 revenue rises to $41.3 mln, but missed analysts' expectations

• Adjusted EBITDA of $221.2 mln beat estimates, per LSEG data

• Net income for Q2 was $137.5 mln, reversing loss last year

Outlook

• Company shifts to long-term contracted fees in Power and Digital Infrastructure

• Hut 8 secures five-year contracts for 310 MW with Ontario IESO

• Company advancing AI data center opportunities with 430 MW capacity

• American Bitcoin to trade on Nasdaq under ticker symbol 'ABTC'

Result Drivers

• LONG-TERM CONTRACTS - Shift from merchant exposure to long-term contracted fees, nearly 90% of energy capacity under management commercialized under agreements, per CEO Asher Genoot

• AI DATA CENTER DEVELOPMENT - Advanced AI data center opportunities with 430 MW of total capacity, including Vega's initial energization

• AMERICAN BITCOIN - Restructuring of mining business with launch of American Bitcoin as anchor tenant for Power and Digital Infrastructure segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Hut 8 Corp is $25.50, about 18.9% above its August 6 closing price of $20.69

Press Release: ID:nGNX9MR1bK