Hut 8 Corp.

The business

Hut 8 describes itself as an energy infrastructure platform that brings together power, digital infrastructure and compute for energy-intensive uses in the U.S. and Canada. It reports Power, Digital Infrastructure, Compute and Other segments. The company was formed in its current shape in 2020, has about 250 employees and trades on the TSX and Nasdaq.

The investment story has shifted from bitcoin mining to building AI data centres. As of its Q2 2026 report, Hut 8 had 949 MW of contracted IT capacity, leased or backstopped by investment-grade counterparties, representing about $26.6B (USD) of expected aggregate base-term contract value and more than $1.75B of expected average annual NOI. Two campuses, River Bend and Beacon Point, have 1,330 MW of utility capacity under active construction. Initial data hall deliveries are targeted for Q2 2027 at River Bend and Q3 2027 at Beacon Point. After quarter-end, a second 352 MW lease fully commercialized Beacon Point's one gigawatt of utility capacity.

Bitcoin remains part of the business through American Bitcoin, Hut 8's majority-owned subsidiary. Management has said future bitcoin exposure will mainly sit there. Hut 8's AI data centre development pipeline was about 8.7 GW at Q2 2026, up roughly 300 MW from the previous quarter.

The moat

Secured power and land are the main bottleneck for AI data centres, and Hut 8 controls a large pipeline of energized and under-construction utility capacity.

Long-term leases with investment-grade or backstopped tenants turn development work into contracted, infrastructure-like cash flow once facilities are delivered.

Its ability to raise large non-recourse, investment-grade project financing ($7.5B across River Bend and Beacon Point Phase 1 in Q2 2026) is a competitive advantage that few former miners have.

Financial snapshot

Most recent reported period : Q2 2026 (quarter ended June 30, 2026). Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

Free cash flow yield : ≈-7.9%FCF TTM -C$1.16B / market cap C$14.64B (StockAnalysis, Oct 13, 2026); negative due to data-centre construction capex

Free cash flow is deeply negative because Hut 8 is in a heavy build phase. On a USD basis, TTM operating cash flow was -$89.4M and capital spending was $724.4M, for free cash flow of -$813.9M. That compares with -$356.2M in FY2025 and -$232.1M in FY2024. Spending will stay heavy while River Bend and Beacon Point are under construction.

Revenue is growing quickly from a small base: TTM revenue of $318M (USD) was up about 130%, and Q2 2026 revenue was $74.9M versus $41.3M a year earlier, though slightly below analyst estimates. Data centre lease revenue is not expected to begin until the first data halls are delivered in 2027. Until then, results will mainly reflect bitcoin-related and power revenue, along with swings in the value of digital assets.

See the full free-cash-flow yield ranking →

Valuation & what to watch

Traditional metrics do not capture Hut 8 today. At C$119.09 (October 13, 2026), the shares trade at about 5.9 times book value and roughly 32 times trailing revenue (C$14.64B market cap against C$451.5M of TTM revenue). The company is losing money on a GAAP basis, with a TTM net loss of C$851M, partly because of unrealized losses on bitcoin holdings: $138.6M (USD) in Q2 2026 alone.

The market is valuing Hut 8 on its contracted data centre backlog, about $26.6B of expected base-term contract value and more than $1.75B of expected average annual NOI once the facilities are running, rather than on current results. Enterprise value of C$25.65B includes C$10.56B of net debt, much of it project financing raised to build those campuses. The valuation therefore depends on delivering construction on time and on budget from 2027 onward.

Dividend

Hut 8 does not pay a dividend; its cash goes into building its AI data centre campuses.

Risks & the bear case

• Execution risk: about 1.3 GW of capacity is under construction, and delays, cost overruns or equipment and power-interconnection problems could push back the 2027 delivery targets that underpin the valuation.
• Heavy leverage and negative free cash flow (C$10.56B of net debt, about -C$1.16B of TTM FCF) make the company dependent on continued access to capital, although the project debt is non-recourse to Hut 8 Corp.
• Tenant concentration on a small number of large AI customers creates counterparty risk if AI compute demand or customer finances weaken.
• Bitcoin price swings still affect reported earnings through unrealized gains and losses and through the American Bitcoin subsidiary.
• The valuation already prices in years of growth (about 32 times trailing revenue), so disappointments could lead to sharp share-price declines; the stock has moved by as much as 8% in a single day after earnings.

Recent developments

2026-08-04: Reported Q2 2026 revenue of $74.9M (USD) and a net loss of $177.1M; contracted IT capacity reached 949 MW with about $26.6B of expected base-term contract value.

2026 (Q2): Closed $7.5B of investment-grade, non-recourse project financing across River Bend and Beacon Point Phase 1.

2026 (after Q2): Signed a second 352 MW lease at Beacon Point, fully commercializing the campus's one gigawatt of utility capacity.

2026-09: Announced a $1.07B senior secured revolving credit facility to expand corporate liquidity.

Verdict

Hut 8 is now mainly a bet on building AI data centres. It has an unusually large contracted backlog of about $26.6B and investment-grade project financing in place, which few former bitcoin miners can match. The other side of the picture is significant: no meaningful lease revenue until 2027, deeply negative free cash flow, heavy debt, leftover bitcoin volatility and a valuation that already assumes strong execution. This is a high-risk growth stock suited only to investors who can tolerate large swings and construction risk.