An energy infrastructure company that builds and runs data centers, Bitcoin mining, and AI cloud services, powering brands like American Bitcoin, Hut 8 Canada, and Highrise AI. The firm traces back to Hut 8 Mining Corp., founded in 2017, which merged with US Bitcoin Corp in 2023. Its name honors Hut 8 at Bletchley Park, where Alan Turing and his team broke German naval codes in World War II.
A $138.6M Bitcoin fair-value loss drove a $150.2M net loss, even as Compute revenue more than doubled on a sixfold increase in Bitcoin mined.
A falling Bitcoin price erased $138.6 million in value, pushing the company to a net loss. rose 81% to $74.9 million as the number of Bitcoin mined climbed to 935 from 308 a year ago, but the non-cash digital asset loss swung to a $150.2 million loss from a $137.3 million profit. The company now holds $1.04 billion in Bitcoin and has secured $7.5 billion in project financing for two AI data center campuses, shifting the story from mining output to the execution of its infrastructure build-out.
Key takeaways
A $138.6 million non-cash loss on digital assets, driven by Bitcoin's price falling from $68,222 to $59,847 during the quarter, was the primary reason swung to a $150.2 million loss from a $137.3 million profit a year ago.
rose 81% to $74.9 million, as Compute revenue increased $38.2 million to $72.5 million following a fleet upgrade and the energization of the Vega site, which lifted the number of Bitcoin mined to 935 from 308.
widened 16.8 percentage points to 64.1%, as Compute grew faster than the cost of revenue after the fleet upgrade.
Section summaries
Management's Discussion and Analysis
Hut 8 swung to a $177M net loss in Q2 2026 as a Bitcoin price decline drove a $139M digital asset loss, while Compute revenue surged 111%.
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Total rose 81% to $74.9M, driven by a $38.2M increase in Compute revenue as Bitcoin mined jumped from 308 to 935, partially offset by a lower average Bitcoin price.
General and administrative expenses more than doubled to $76.1 million, primarily from a $43.6 million increase in and higher headcount to support growth.
The company closed $7.5 billion in gross proceeds from non-recourse project financings for the River Bend and Beacon Point AI data center campuses, and the energy pipeline grew to 9,370 MW with 830 MW now under construction.
, which excludes digital asset mark-to-market impacts, rose to $10.4 million from $4.2 million in the prior year period.
What changed
The Q1 FY2026 watch item on Bitcoin price materialized: a further decline to $59,847 produced a $138.6 million non-cash loss, though the impact on was smaller than the prior quarter's $295.7 million loss as the price decline moderated.
The Vega data center's contribution to mining output was sustained: Bitcoin mined rose to 935 from approximately 817 in Q1 FY2026, confirming the site as a meaningful production driver.
Management did not resume disclosing the cost to mine a single Bitcoin, continuing the absence noted since Q2 FY2025.
The Q1 FY2026 watch item on tariff risk remains open: the company acknowledges tariffs could materially increase equipment costs or delay projects, with no assurance of full mitigation.
improved to negative $5.6 million from negative $27.2 million in Q1 FY2026, moving closer to breakeven, though the six-month total remains an outflow of $32.8 million.
What to watch
Whether the $7.5 billion in project financings for River Bend and Beacon Point translates into ground-breaking and construction progress, and at what cost per MW relative to the $9–$11 million estimate.
Bitcoin price trajectory: with 17,316 Bitcoin valued at approximately $1.04 billion on the balance sheet, each 10% price move would create an approximately $104 million non-cash gain or loss in the next quarter.
Whether the 830 MW under construction begins generating recurring Digital Infrastructure or HPC , establishing a base beyond the volatile Compute .
sustainability: whether the near-breakeven result this quarter marks a durable shift or remains dependent on timing, given the $32.8 million cash burn in the first half of FY2026.
The company reported a $138.6M loss on digital assets in Q2 2026 versus a $217.6M gain a year ago, as Bitcoin's price fell from $68,222 to $59,847 during the quarter.
General and administrative expenses more than doubled to $76.1M, primarily due to a $43.6M increase in and higher headcount to support growth.
Liquidity was significantly strengthened by $7.5B in gross proceeds from project financings for the River Bend and Beacon Point data center campuses.
The energy pipeline grew to 9,370 MW, with 830 MW now under construction, including the fully contracted 704 MW Beacon Point campus after signing a second long-term lease.
, which excludes digital asset impacts, improved to $10.4M from $4.2M in the prior year period.
Quantitative and Qualitative Disclosures About Market Risk
Hut 8 faces material risk from Bitcoin price swings, FX translation, tariffs, and counterparty credit, with no active FX hedging.
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Bitcoin price risk is the dominant exposure: as of June 30, 2026, the company held 17,316 Bitcoin with an aggregate of ~$1.04 billion, and price declines directly reduce potential cash proceeds and liquidity.
Foreign exchange risk arises because a portion of operations and Bitcoin holdings sit in Hut 8 Canada, with costs in Canadian dollars and reporting in U.S. dollars; the company does not currently engage in foreign currency hedging.
Tariff risk could materially increase equipment and infrastructure costs or limit component availability, potentially delaying projects and pressuring margins; the company monitors trade policy and may adjust procurement but offers no assurance of full mitigation.
Interest rate risk is concentrated in one variable-rate loan (the TZRC Secured Promissory Note, capped at 15.25%) and potential future floating-rate project financing; the company may use hedging instruments but notes they may be unavailable or ineffective.
Custodian risk exists because Bitcoin is held with third-party custodians (Coinbase Custody, NYDIG, Anchorage, BitGo), exposing assets to operational failures, cyber breaches, or custodian financial difficulties.
Credit risk stems from pledging Bitcoin as collateral and from cash deposits; the company selects counterparties based on creditworthiness and has not incurred material losses in the six months ended June 30, 2026, but default risk remains.
For a description of material legal proceedings in which we are involved, see Note 18. Commitments and contingencies to our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report, which is incorporated herein by reference. We are no…
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For a description of material legal proceedings in which we are involved, see Note 18. Commitments and contingencies to our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report, which is incorporated herein by reference.
We are not presently a party to any other legal or regulatory proceedings that in the opinion of our management, if determined adversely to us, would individually or taken together have a material adverse effect on our business, financial condition, or results of operations. However, we are subject to regulatory oversight by numerous federal, state, provincial, local, and other regulators and we are, and we may become, subject to various legal proceedings, inquiries, investigations, and demand letters that arise in the course of our business. See “Risk Factors—Risks Related to Certain Regulations and Laws, Including Tax Laws—We are involved in legal proceedings from time to time, which could adversely affect us” in the Annual Report.
As of the date of this Quarterly Report, there have been no material changes from the risk factors set forth in Part I, Item 1A of the Annual Report. We are subject to various risks and uncertainties that could materially adversely affect our business, financial condition, res…
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As of the date of this Quarterly Report, there have been no material changes from the risk factors set forth in Part I, Item 1A of the Annual Report. We are subject to various risks and uncertainties that could materially adversely affect our business, financial condition, results of operations, and the trading price of our common stock. You should carefully read and consider the risks and uncertainties included in the Annual Report, together with all of the other information in the Annual Report and this Quarterly Report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, and other documents that we file with the SEC. The risks and uncertainties described in these reports may not be the only ones we face. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business, financial condition, or results of operations. The factors discussed in these reports, among others, could cause our actual results to differ materially from historical results and those expressed in forward-looking statements made by us or on our behalf in filings with the SEC, press releases, communications with investors, and oral statements.