Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 31 Oct, 25 | HUT | Buy | USD 48.57 | USD 51.0 | USD 54.5 | 3 days | Closed |
13.84%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Hut 8 Corp. operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing " Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.
Massive Growth in Adjusted EBITDA: Adjusted EBITDA increased to USD 221.2 million in Q2 FY2025 from –USD 57.5 million in Q2 FY2024—an improvement of USD 278.7 million, indicating strong underlying profitability and efficient capital allocation
Strong Profitability Rebound: Hut 8 achieved a net income of USD 137.5 million in Q2 FY2025, compared to a net loss of USD 72.2 million in Q2 FY2024. This turnaround represents a USD 209.7 million improvement, driven by substantial digital asset gains and operational restructuring
Rising Energy Costs: The energy cost per MWh increased from USD 31.71 to USD 39.82, representing a 25.6% increase year-over-year. This inflationary pressure on operating costs could affect margins if not offset by long-term pricing contracts
Decline in Energy Capacity Under Management: Total energy capacity under management declined from 1,117 MW in Q2 FY2024 to 1,020 MW in Q2 FY2025, reflecting an 8.7% contraction, likely due to the restructuring of mining operations and reallocation of assets
Hut 8 faces significant exposure to volatility in Bitcoin prices and energy costs, which could materially impact its profitability and valuation despite diversification efforts
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 48.57 | 43.0 | 51.0 | 54.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Financial Turnaround and Top-Line Growth: Hut 8 Corp. reported a notable financial rebound in the second quarter of FY2025, underscored by a substantial rise in profitability and revenue expansion. Total revenue for the quarter stood at USD 41.3 million, reflecting a year-over-year increase from USD 35.2 million in Q2 FY2024. The improvement was primarily driven by performance across the Compute segment, supported by growing contributions from the Power and Digital Infrastructure divisions. Most significantly, the company achieved a net income of USD 137.5 million, a remarkable turnaround from a net loss of USD 72.2 million in the prior year period, reflecting operational efficiencies and gains on digital assets.
Segmental Performance and Strategic Execution: The company’s multi-segment structure—comprising Power, Digital Infrastructure, and Compute—continued to demonstrate strategic depth. The Power segment generated USD 5.5 million in revenue through power generation and managed services, while the Digital Infrastructure segment contributed USD 1.5 million through ASIC and CPU colocation services. The Compute segment remained the core driver with USD 34.3 million in revenue, primarily from Bitcoin Mining and data center operations. The consolidation of American Bitcoin’s operations and strategic partnerships with entities like Macquarie, BITMAIN, and Coinbase reinforced Hut 8’s integrated energy and compute platform.
Significant Expansion in Profitability Metrics: Adjusted EBITDA surged to USD 221.2 million in Q2 FY2025, compared to a negative USD 57.5 million in the prior year, reflecting a major improvement in underlying profitability. This growth was driven by both a USD 217.6 million gain on digital assets and a favorable shift in contract structure, with nearly 90% of energy capacity under management commercialized under long-term agreements, up from less than 30% a year earlier. This strategic realignment reduced merchant exposure, improved cash flow predictability, and enhanced margin stability.
Infrastructure Pipeline and Capacity Growth: Hut 8 continued to strengthen its infrastructure base, reporting a total energy capacity under management of 1,020 MW and a robust 10,800 MW development pipeline, including 3,100 MW under exclusivity. Key initiatives included securing five-year capacity contracts for 310 MW of power generation assets through Far North Power Corp., a joint entity with Macquarie. Additionally, the launch of the 205 MW Vega facility showcased the company’s innovation in integrating ASIC and GPU infrastructure, providing a foundation for future AI data center development.
Balance Sheet Strength and Capital Strategy: The company demonstrated disciplined capital management through the expansion of its strategic Bitcoin reserve to 10,667 BTC, valued at USD 1.1 billion as of June 30, 2025. Hut 8 also amended its Bitcoin-backed credit facility with Coinbase, doubling the capacity from USD 65 million to USD 130 million, while reducing its interest cost through a shift from floating rates (10.5%–11.5%) to a fixed rate of 9.0%. These initiatives improved liquidity and balance sheet flexibility, positioning the company for sustained growth and future acquisitions.
Strategic Transformation and Institutional Partnerships: The quarter marked a transformative phase for Hut 8’s business model, highlighted by the restructuring of its mining operations under American Bitcoin Corp. and its planned Nasdaq listing via a merger with Gryphon Digital Mining. The USD 220 million private placement underscored institutional confidence in the company’s strategy. Simultaneously, strategic partnerships with BITMAIN, Macquarie, and Coinbase enhanced operational reach and positioned Hut 8 as a leading energy-integrated compute infrastructure provider capable of supporting next-generation AI and high-performance computing workloads.
Innovation and Competitive Positioning in AI Infrastructure: Hut 8 continued to leverage its energy-first approach to enter the AI infrastructure market. The Vega facility, designed with in-house liquid-cooling technology, exemplified the company’s focus on innovation and scalability. The project serves as a blueprint for future AI-oriented data centers and aligns with Hut 8’s ambition to become a category-defining leader in power-efficient, high-compute infrastructure.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Hut 8 Corp. (NASDAQ: HUT) at the closing market price of USD 48.57, as on Oct 30, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HUT Hut 8 Corp. Common Stock |
2.88 5.14% | 59.06 | - | 59.52 | 13.00 | 3.58 | 37.80 | -36.6842 |
| MS Morgan Stanley |
-2.29 1.24% | 182.81 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 31.98 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
-1.56 1.48% | 103.61 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
-7.485 0.79% | 938.85 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 31, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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