10-Q – 2025-08-07 – hut-20250630x10q.htm

● Coinbase Loan. On June 16, 2025, we entered into a Third Amended and Restated Credit Agreement (“Credit Agreement”) with Coinbase Credit, Inc. (“Coinbase”) to, among other things, amend and expand our Bitcoin-backed credit facility from $65.0 million to up to $130.0 million, available through July 30, 2025, and extend the maturity date to June 16, 2026. Additionally, the interest rate structure was converted to a fixed interest rate of 9.0%, compared to a stated interest rate ranging from 10.5% to 11.5% between the quarter ended December 31, 2023 and the quarter ended March 31, 2025.
● American Bitcoin Private Placement. In June 2025, American Bitcoin issued and sold 11,002,954 shares of its Class A common stock for aggregate gross proceeds in cash and Bitcoin of $220.1 million, and aggregate net proceeds of approximately $215.3 million after deducting certain fees and expenses incurred in connection with the issuance, including aggregate commissions of $4.8 million. $10.0 million worth of the shares were sold for consideration of Bitcoin in lieu of cash at an exchange rate of one Bitcoin to $104,000. During the period from July 1, 2025 to August 6, 2025, American Bitcoin used $205.6 million of these proceeds to purchase approximately 1,726 Bitcoin, at an weighted average price of approximately $119,120 per Bitcoin, to further expand its strategic Bitcoin reserve.

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● Energization of Vega Facility. At the end of Q2 2025, we completed the initial energization of our Vega facility in the panhandle of Texas. The single-building facility, spanning 162,000 square feet, is powered by 205 MW of nameplate capacity behind-the-meter by a wind farm and front-of-the-meter by the ERCOT grid. At full energization, Vega is expected to support up to approximately 15 exahash per second (“EH/s”) of direct-to-chip liquid cooling BITMAIN U3S21EXPH servers for Bitcoin mining ASIC compute. BITMAIN is the client for all of the approximately 15 EH/s under an ASIC colocation agreement. Additionally, under this ASIC colocation agreement we have an option to purchase all or a portion of the colocated miners at a fixed price within six months of their energization.
● Far North Capacity Contract Awards. At the end of Q2 2025, each of our four natural gas-fired power plants in Ontario (the “Power Plants”) were awarded five-year capacity contracts with the Ontario Independent Electricity System Operator (“IESO”). The Power Plants are owned and operated by Far North Power Corp. (“Far North JV”), a majority owned subsidiary of Hut 8 Corp. The contracts were awarded following successful bids submitted into the competitive IESO Medium-Term 2 capacity auction and will commence on May 1, 2026. The contracted assets total 310 MW of nameplate capacity across the four Power Plants. The contracts include a weighted average capacity payment of approximately C $530 per MW-business day in Year 1, with partial inflation indexation that allows for potential increases over time.

Key Factors Affecting Our Performance
Price of Bitcoin
Our business is heavily dependent on the price of Bitcoin, which has historically experienced significant volatility. We generate revenue from Bitcoin rewards that we earn through mining in our facilities. We have also acquired, and may in the future acquire, additional Bitcoin through at-market purchases to build our strategic reserve of Bitcoin. Under ASU 2023-08,  Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets  (“ASU 2023-08”), Bitcoin is revalued at fair value at the end of each reporting period, with changes in fair value recognized in net income. As a result, fluctuations in the price of Bitcoin may significantly impact our results of operations.
Bitcoin network difficulty and hashrate
Our business is not only impacted by the volatility in Bitcoin prices, but also by increases in the competition for Bitcoin production. This increased competition is described as the network hashrate resulting from the growth in the overall quantity and quality of miners working to solve blocks on the Bitcoin blockchain, and the difficulty index associated with the secure hashing algorithm employed in solving the blocks. Increased difficulty reduces the mining proceeds of the equipment proportionally and eventually requires Bitcoin miners like us to upgrade their equipment to remain profitable and compete effectively with other miners. Conversely, a decline in network hashrate results in a decrease in difficulty, increasing mining proceeds and profitability.
Block reward and halving
The current Bitcoin reward for solving a block is 3.125 Bitcoin. The Bitcoin network is programmed such that the Bitcoin block reward is halved every 210,000 blocks mined, or approximately every four years. This reduction in reward spreads out the release of Bitcoin over a long period of time as fewer Bitcoin are mined with each halving event. Bitcoin halving events impact the number of Bitcoin that we generally mine through American Bitcoin which, in turn, may have a potential impact on our results of operations. The last halving event occurred in April 2024, and the next halving event is expected to occur in 2028.
Power Costs
Power is the foundation of our platform. We acquire, develop, and manage critical energy assets such as interconnects, powered land, and other electrical infrastructure to address the load demands of energy-intensive applications such as Bitcoin mining and HPC. We currently maintain a portfolio which has access to competitively priced electrical power based on the regions in which we operate. However, there is no guarantee that we will be able to procure additional power on similar terms, or at all. Market prices for power, capacity, and other ancillary services are unpredictable and tend to fluctuate substantially. See “Risk Factors—Risks Related to Our Business and Operations—We are subject to risks associated with our need for significant electrical power” in the Annual Report.
​

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Key Performance Indicators
In addition to our financial results, financial measures under generally accepted accounting principles in the United States of America (“GAAP”) financial measures, and non-GAAP financial measures, we use certain key performance indicators to evaluate our business, identify trends, and make strategic decisions.
The following table presents our key performance indicators for the three and six months ended June 30, 2025 and 2024.
​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended
​
Six Months Ended

​
​
June 30,
​
June 30,

​
    
2025
​
2024
    
2025
​
2024

Energy capacity under management (1)
​
​
1,020 MW
​
​
1,117 MW
​
​
1,020 MW
​
​
1,117 MW

Energy cost per MWh
​
$
39.82
​
$
31.71
​
$
44.39
​
$
35.40

Number of Bitcoin in strategic reserve (2)
​
​
10,667
​
​
9,102
​
​
10,667
​
​
9,102

(1) Energy capacity under management includes all Power assets: Power Generation, Managed Services, ASIC Colocation, CPU Colocation, Bitcoin Mining, Data Center Cloud, and non-operational sites.
(2) Number of Bitcoin in strategic reserve includes Bitcoin held in custody, pledged as collateral, or pledged for a miner purchase under an agreement with BITMAIN.
Energy cost per MWh
Our management reviews the energy cost per MWh to better understand cost efficiency, operational performance, and identify opportunities for overall profitability improvements. Energy cost per MWh is calculated by dividing our total energy expense by the total MWh utilized at our facilities during the respective periods and includes our net share of a 50/50 joint venture for a site with a facility in McCamey, Texas (the “King Mountain JV”).
​
Energy cost per MWh for the three months ended June 30, 2025 was $39.82 compared to $31.71 for the three months ended June 30, 2024. The increase was primarily due to an increase in emission credit purchases, which we purchase in order to offset the emissions from our energy consumption, as well as an uptick in MWhs consumed and higher power prices during the three months ended June 30, 2025.
​
Energy cost per MWh for the six months ended June 30, 2025 was $44.39 compared to $35.40 for the six months ended June 30, 2024, and the increase was primarily due to fixed transmission and distribution charges at our Medicine Hat site that continued during downtime while fleet upgrades occurred, as well as higher seasonal pricing at our sites located in Texas.
​
Number of Bitcoin in strategic reserve
Number of Bitcoin in strategic reserve represents the number of Bitcoin we own as of each reporting period end date, which is the aggregate number of our Bitcoin held in custody, pledged as collateral, or pledged for a miner purchase. We have the ability to leverage our Bitcoin in strategic reserve as a flexible financial asset to fund growth initiatives, optimize our balance sheet, and capitalize on emerging market opportunities. Our management uses this metric to assess the value of our Bitcoin in strategic reserve and determine when and how to deploy said reserve, including whether to continue to hold the Bitcoin. As of June 30, 2025, we had 10,667 Bitcoin in strategic reserve compared to 9,102 Bitcoin held in strategic reserve as of June 30, 2024. The increase was attributable to additional Bitcoin mined over the year as well as an at-market purchase of Bitcoin in December 2024. As of June 30, 2025, of the 10,667 in our strategic reserve, 404 Bitcoin was held by American Bitcoin.
Energy capacity under management
Energy capacity under management comprises all power assets: Power Generation, Managed Services, ASIC Colocation, CPU Colocation, Bitcoin Mining, Data Center Cloud, and non-operational sites. Management reviews this metric to assess total energy capacity utilization across our operations to drive an efficient allocation of resources.
​

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Energy capacity under management as of June 30, 2025 was 1,020 MW compared to 1,117 MW as of June 30, 2024. The decrease was due to the loss of our Managed Services contract with Ionic for five sites that consisted of 302 MW, partially offset by the addition of our Vega site, which has 205 MW of nameplate capacity.
​
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss), adjusted for impacts of interest expense, income tax provision or benefit, depreciation and amortization, our share of unconsolidated joint venture depreciation and amortization, foreign exchange gain or loss, gain or loss on sale of property and equipment, gain or loss on derivatives, gain or loss on other financial liability, the removal of non-recurring transactions, asset contribution costs, loss from discontinued operations, (income) loss attributable to non-controlling interests, and stock-based compensation expense in the period presented. You are encouraged to evaluate each of these adjustments and the reasons our Board and management team consider them appropriate for supplemental analysis.
Our board of directors and management team use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period.
Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
For a reconciliation to our most directly comparable financial measure calculated and presented in accordance with GAAP, please see “—Results of Operations” below.
Business Segments 
We have four reportable business segments: Power, Digital Infrastructure, Compute, and Other.  
Power
The Power business segment consists of Power Generation and Managed Services.
Power Generation
We generate revenue from our 80.1% interest in a joint venture between us and Macquarie, which provides capacity and energy to the electrical grid through four natural gas power plants in Ontario, Canada that were acquired in February 2024 (the “Far North JV”). The power generation facilities are connected to the Independent Electricity System Operator, which operates Ontario’s power grid, and primarily generate revenue from capacity and electricity sales. Revenue generated from capacity and electricity sales is variable and depends on several factors, including generation capacity in the market, the supply and demand for electricity, and the prevailing price of natural gas.

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Managed Services
Our Managed Services business provides institutional partners with an end-to-end partnership model for energy infrastructure development, including:
● Project inception : site design, procurement, and construction management;
● Project operationalization : software automation, process design, personnel hiring, and team training;
● Revenue management : utilities contracts, hosting operations, and customer management;
● Project optimization : energy portfolio optimization and strategic initiatives; and/or
● Compliance and reporting : finance, accounting, and safety

Cash flows are generated through a fee structure that is typically fixed based on power capacity under management, with reimbursement of passthrough costs. In addition to the fixed fee, under certain agreements, further cash flows may be driven from incentive bonuses and certain energy management services.  
As of June 30, 2025, we managed 280 MW of energy capacity under this program at one site in the United States owned by the King Mountain JV.
Starting April 1, 2025, we began operating as the exclusive provider of managed services to American Bitcoin via the execution of a Master Managed Services Agreement (“MSA”). Under the MSA, we provide American Bitcoin with management, oversight, strategy, compliance, operational, and the other services for American Bitcoin’s mining operations colocated at our facilities. The fee structure includes a fixed monthly fee based on the power capacity of each facility, as well as designated site level reimbursements. As American Bitcoin is a consolidated subsidiary, all fees under the MSA are eliminated in consolidation.
Digital Infrastructure
The Digital Infrastructure business segment consists of CPU Colocation and ASIC Colocation services.
CPU Colocation
Our CPU Colocation business spans five locations in Canada (Mississauga, Ontario; Vaughan, Ontario; Kelowna, British Columbia; and two locations in Vancouver, British Columbia) with a total energy capacity of 3 MW and more than 36,000 square feet of geo-diverse data center space powered by predominantly emission-free energy sources. Our infrastructure is designed to support a variety of compute, storage, and network workloads across traditional enterprise, B2B, machine learning, visual effects, and AI. This segment serves computing needs unrelated to Bitcoin Mining. These data centers are geo-diverse and carrier neutral with network diversity and redundancy from multiple telecommunications providers.
Our CPU Colocation business is based on a fixed-fee model. Customers pay a fixed recurring monthly fee based on a set amount of resources assigned.
ASIC Colocation
Under our ASIC Colocation business, we enter into contracts to host and operate mining equipment on behalf of third parties within our facilities. These services include the provision, if applicable, and hosting of mining equipment as well as the monitoring, troubleshooting, repair, and maintenance of such equipment. Revenues from ASIC Colocation services are generated through fees that may be fixed or based on profit-sharing arrangements, often with reimbursement for certain pass-through costs such as electricity.
During the fourth quarter of 2024, our agreement with Ionic Digital Inc. (“Ionic”) to host approximately 8,500 miners (0.8 EH/s) at our Alpha site was terminated. As a result, we ceased providing ASIC Colocation services at Alpha and utilize the site solely for self-mining purposes.
During 2024, we entered into a new ASIC Colocation contract with BITMAIN. The agreement features a fixed hosting fee with an option for us to purchase all or a portion of the hosted machines in up to three tranches at a fixed price within six months of energization of the relevant tranches. BIMAIN miners will be hosted at our Vega site, which completed its first energization at the end of June 2025.

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Starting April 1, 2025, we began operating as the exclusive provider of ASIC colocation services to American Bitcoin via the execution of a Master Colocation Services Agreement (“CSA”). Under the CSA, we provide ASIC colocation services for American Bitcoin’s miners at our facilities. The fee structure typically includes a fixed monthly fee based on the power capacity of each facility, as well as infrastructure related site level reimbursements. As American Bitcoin is a consolidated subsidiary, all fees under the CSA are eliminated in consolidation.
Compute
The Compute business segment consists of Bitcoin Mining, GPU-as-a-Service, and Data Center Cloud operations.
Bitcoin Mining
Currently, one of our largest revenue streams is derived from Bitcoin Mining.
Our Bitcoin Mining business spanned four sites as of June 30, 2025:
● three sites with facilities we own and/or lease, and operate: (1) Alpha (Niagara Falls, New York), (2) Medicine Hat (Medicine Hat, Alberta), and (3) Salt Creek (Orla, Texas); and 
● one site that we own 50% of through a joint venture, King Mountain (McCamey, Texas). 

Until April 30, 2024, we also had Bitcoin Mining operations hosted at Kearney, Nebraska and Granbury, Texas. We also previously mined Bitcoin at a site in Drumheller, Alberta, which has been non-operational since March 2024. The closure was due to the site’s lack of profitability as a result of several factors, mostly elevated energy costs and underlying voltage issues. We will consider re-energizing Drumheller if market conditions improve.
Bitcoin rewards are received from mining activity through third-party mining pool operators, which allow miners to combine their processing power, increasing their chances of solving a block and getting paid by the network. We provide computing power to mining pools, which use this computing power to operate nodes and validate blocks on the blockchain. The pools then distribute our pro-rata share of Bitcoin mined to us based on the computing power we contribute.
During February and March 2025, our mining activity was reduced due to a planned fleet upgrade, which was completed on April 4, 2025. During the quarter ended June 30, 2025, the fleet upgrade resulted in higher efficiency Antminer S21+ miners which improved Bitcoin Mining operations.
On March 31, 2025, we launched American Bitcoin. Beginning April 1, 2025, Bitcoin Mining operations previously reported under our Compute segment remain under this segment but operate generally through the American Bitcoin brand.
GPU-as-a-Service
Our GPU assets are deployed under our wholly owned subsidiary, Highrise AI, Inc., at a third-party colocation site near Chicago, Illinois. This segment generates recurring revenue through payments made by the provider to us based on fixed infrastructure payments and a revenue share tied to GPU utilization.
Data Center Cloud
Our Data Center Cloud services support both public and private cloud deployments, managed backup, business continuity and disaster recovery services, and high-performance, high-capacity storage solutions. We employ a consumption-based fee structure where customers commit to a baseline level of compute, storage, network, or power usage as defined in their service agreements. Any usage beyond this baseline is typically billed incrementally, so costs are aligned with actual resource consumption and customers are afforded flexibility as their needs evolve.

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Other    
Equipment Sales and Repairs
We may sell mining equipment when profitable opportunities arise (e.g., if market prices exceed our procurement cost). We may also repair miners for third parties in exchange for a fee, as we have a fully equipped, MicroBT-certified repair center space at our Medicine Hat site.
​

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Results of Operations
Three Months Ended June 30, 2025 and 2024
​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended
 
​
​

​
​
June 30,
​
​
Increase

(in USD thousands)
    
2025
    
2024
    
​
(Decrease)

Revenue:
​
​
​
​
​
​
​
​
​

Power
​
$
5,492
​
$
10,530
​
$
(5,038)

Digital Infrastructure
​
​
1,512
​
​
5,264
​
​
(3,752)

Compute
​
​
34,295
 
​
15,795
​
​
18,500

Other
​
​
—
​
​
3,626
​
​
(3,626)

Total revenue
​
 
41,299
 
​
35,215
​
​
6,084

​
​
​
​
​
​
​
​
​
​

Cost of revenue (exclusive of depreciation and amortization shown below):
​
​
​
​
​
​
​
​
​

Cost of revenue – Power
​
​
5,000
​
​
5,449
​
​
(449)

Cost of revenue – Digital Infrastructure
​
​
2,120
​
​
4,331
​
​
(2,211)

Cost of revenue – Compute
​
​
14,656
​
​
8,670
​
​
5,986

Cost of revenue – Other
​
​
—
​
​
2,186
​
​
(2,186)

Total cost of revenue
​
​
21,776
​
​
20,636
​
​
1,140

​
​
​
​
​
​
​
​
​
​

Operating expenses (income):
​
 
​
​
​
​
​
​
​

Depreciation and amortization
​
​
19,458
​
​
11,531
​
​
7,927

General and administrative expenses
​
​
30,158
​
​
17,899
​
​
12,259

(Gains) losses on digital assets
​
​
(217,640)
 
​
71,842
​
​
(289,482)

(Gain) loss on sale of property and equipment
​
​
(312)
 
​
—
​
​
(312)

Total operating (income) expenses
​
​
(168,336)
​
​
101,272
​
​
(269,608)

Operating income (loss)
​
​
187,859
​
​
(86,693)
​
​
274,552

​
​
​
​
​
​
​
​
​
​

Other income (expense):
​
 
​
​
​
​
​
​
​

Foreign exchange gain
​
​
3,114
​
​
720
​
​
2,394

Interest expense
​
​
(8,396)
​
​
(6,012)
​
​
(2,384)

(Loss) gain on derivatives
​
​
(18,403)
​
​
17,219
​
​
(35,622)

Loss on other financial liability
​
​
(181)
​
​
—
​
​
(181)

Equity in earnings of unconsolidated joint venture
​
 
1,064
 
​
2,440
​
​
(1,376)

Total other (expense) income
​
 
(22,802)
 
​
14,367
​
​
(37,169)

​
​
 
​
​
​
​
​
​
​

Income (loss) from continuing operations before taxes
​
​
165,057
​
​
(72,326)
​
​
237,383

​
​
​
​
​
​
​
​
​
​

Income tax (provision) benefit
​
​
(27,574)
​
​
1,874
​
​
(29,448)

​
​
​
​
​
​
​
​
​
​

Net income (loss) from continuing operations
​
$
137,483
​
$
(70,452)
​
$
207,935

​
​
​
​
​
​
​
​
​
​

Loss from discontinued operations (net of income tax of nil and nil, respectively)
​
​
—
​
​
(1,738)
​
​
1,738

​
​
​
​
​
​
​
​
​
​

Net income (loss)
​
​
137,483
​
​
(72,190)
​
​
209,673

​
​
​
​
​
​
​
​
​
​

Less: Net (income) loss attributable to non-controlling interests
​
​
(171)
​
​
324
​
​
(495)

Net income (loss) attributable to Hut 8 Corp.
​
$
137,312
​
$
(71,866)
​
$
209,178

​
​
​
​
​
​
​
​
​
​

Net income (loss)
​
$
137,483
​
$
(72,190)
​
$
209,673

Other comprehensive income (loss):
​
​
​
​
​
​
​
​
​

Foreign currency translation adjustments
​
​
39,892
​
​
(7,362)
​
​
47,254

Total comprehensive income (loss)
​
​
177,375
​
​
(79,552)
​
​
256,927

Less: Comprehensive (income) loss attributable to non-controlling interest
​
​
(227)
​
​
423
​
​
(650)

Comprehensive income (loss) attributable to Hut 8 Corp.
​
$
177,148
​
$
(79,129)
​
$
256,277

​

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Table of Contents

Adjusted EBITDA reconciliation:
​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended
​
​
​

​
    
June 30
 
Increase

(in USD thousands)
​
2025
    
2024
     
(Decrease)

Net income (loss)
​
$
137,483
​
$
(72,190)
​
$
209,673

Interest expense
​
 
8,396
​
​
6,012
​
​
2,384

Income tax provision (benefit)
​
 
27,574
​
​
(1,874)
​
​
29,448

Depreciation and amortization
​
 
19,458
​
​
11,531
​
​
7,927

Share of unconsolidated joint venture depreciation and amortization (1)
​
 
5,543
​
​
7,837
​
​
(2,294)

Foreign exchange gain
​
​
(3,114)
​
​
(720)
​
​
(2,394)

Gain on sale of property and equipment
​
​
(312)
​
​
—
​
​
(312)

Loss (gain) on derivatives
​
​
18,403
​
​
(17,219)
​
​
35,622

Loss on other financial liability
​
​
181
​
​
—
​
​
181

Non-recurring transactions (2)
​
​
3,739
​
​
21
​
​
3,718

Loss from discontinued operations (net of income tax benefit of nil and nil, respectively)
​
​
—
​
​
1,738
​
​
(1,738)

(Income) loss attributable to non-controlling interests
​
​
(3,786)
​
​
324
​
​
(4,110)

Stock-based compensation expense
​
 
7,640
​
​
7,010
​
​
630

Adjusted EBITDA
​
$
221,205
​
$
(57,530)
​
$
278,735

​
(1) Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investments in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.
(2) Non-recurring transactions for the three months ended June 30, 2025 primarily represent approximately $3.5 million of American Bitcoin related transaction costs, and $0.2 million of restructuring costs. Non-recurring transactions for the three months ended June 30, 2024 represent approximately $1.5 million of miner relocation costs, $0.7 million of restructuring costs, offset by a $2.2 million tax refund.
Revenue
Total revenue for the three months ended June 30, 2025 and 2024 was $41.3 million and $35.2 million, respectively, and consisted of Power, Digital Infrastructure, Compute, and Other.
Power
Power revenue was $5.5 million and $10.5 million for the three months ended June 30, 2025 and 2024, respectively. This $5.0 million decrease was primarily driven by a $7.8 million decrease in Managed Services revenue due to the termination of the Ionic managed services agreement in December 2024. This decrease was partially offset by a $2.8 million increase in electricity sales through the Far North JV due to an increase in electricity demand in the current year period.
Digital Infrastructure
Digital Infrastructure revenue was $1.5 million and $5.3 million for the three months ended June 30, 2025 and 2024, respectively. This $3.8 million decrease was primarily driven by a $3.8 million decrease in ASIC Colocation revenue as a result of the termination of our colocation agreement with Ionic during the fourth quarter of 2024.
Compute
Compute revenue was $34.3 million and $15.8 million for the three months ended June 30, 2025 and 2024, respectively. This $18.5 million increase was primarily driven by a $16.4 million increase in Bitcoin Mining revenue (which is under American Bitcoin beginning April 1, 2025), largely due to increased mining efficiencies at our Medicine Hat and Salt Creek sites as a result of our fleet upgrade, which not only involved the installation of higher-efficiency machines, but also targeted infrastructure upgrades at our sites to support higher rack-level power density. The fleet upgrade led to an increase in the number of Bitcoin mined (308 Bitcoin mined during the three months ended June 30, 2025 versus 212 Bitcoin mined during the three months ended June 30, 2024). Additionally, there was an increase in the average revenue per Bitcoin mined from $65,731 to $98,425 due to an increase in the price of Bitcoin. The increase was also driven by a $2.3 million increase in revenue from our GPU-as-a-Service offering, which launched in September 2024. These increases were partially offset by a $0.2 million decrease in revenue from our Data Center Cloud operations.

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Other
Other revenue was nil and $3.6 million for the three months ended June 30, 2025 and 2024, respectively. This $3.6 million decrease was due to no equipment sales during the three months ended June 30, 2025, while there were $3.6 million of equipment sales during the three months ended June 30, 2024.
Cost of revenue
Total cost of revenue was $21.8 million and $20.6 million for the three months ended June 30, 2025 and 2024, respectively, and consisted of Power, Digital Infrastructure, Compute, and Other.
Power
Power cost of revenue was $5.0 million and $5.4 million for the three months ended June 30, 2025 and 2024, respectively. The cost of revenue decreased, primarily due to a decrease in our Managed Services related operating costs of $2.3 million due to the termination of our Ionic managed services agreement in December 2024, partially offset by a $1.9 million increase in cost of revenue related to the increased electricity sales by the Far North JV in the quarter.  
Digital Infrastructure
Digital Infrastructure cost of revenue was $2.1 million and $4.3 million for the three months ended June 30, 2025 and 2024, respectively. This $2.2 million decrease was primarily driven by a $2.7 million decrease in ASIC Colocation cost of revenue as a result of the termination of our colocation agreement with Ionic during the fourth quarter of 2024, partially offset by a $0.5 million increase in the cost of revenue related to CPU Colocation operations due to higher electricity and connectivity costs.
Compute
Compute cost of revenue was $14.6 million and $8.7 million for the three months ended June 30, 2025 and 2024, respectively. This $5.9 million increase was primarily driven by a $5.2 million increase in the cost of revenue related to Bitcoin Mining   primarily due to the increased uptime and an increase in the cost per megawatt hour from $32.76 to $41.91. Additionally, there was a $0.7 million increase in costs of revenues related to our new GPU-as-a-Service offering, which launched in September 2024.
Other
Other cost of revenue was nil and $2.2 million for the three   months ended June 30, 2025 and 2024, respectively. This $2.2 million decrease was a result of no equipment sold for the three months ended June 30, 2025.
Depreciation and amortization
Depreciation and amortization expense was $19.5 million and $11.5 million for the three months ended June 30, 2025 and 2024, respectively. The $8.0 million increase was primarily driven by increased depreciation as a result of our fleet upgrade, which not only involved the installation of higher-efficiency machines, but also targeted infrastructure upgrades at our sites to support higher rack-level power density. Additionally, there was increased AI GPU depreciation due to the launch of our GPU-as-a-Service offering in September 2024.
General and administrative expenses
General and administrative (“G&A”) expenses were $30.1 million and $17.9 million for the three months ended June 30, 2025 and 2024, respectively. The $12.2 million increase in G&A expenses was driven by: (i) a $3.5 million increase in transaction costs related to ABTC Merger transaction costs, (ii) a $3.8 million increase in salary and benefit costs due to added headcount to support our growth initiatives, (iii) a $2.1 million increase in professional fees primarily due to legal and tax expenses incurred to support the execution of our growth plans, and (iv) a $2.3 million increase in sales tax expenses, as we received a $2.2 million refund of sales taxes in Canada during the three months ended June 30, 2024.

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(Gains) losses on digital assets
Gains on digital assets were $217.6 million for the three months ended June 30, 2025, compared to losses on digital assets of $71.8 million for the three   months ended June 30, 2024. The gains were due to the increase in Bitcoin price from approximately $82,534 as of March 31, 2025 to approximately $107,173 as of June 30, 2025. In contrast, the price of Bitcoin as of March 31, 2024 of approximately $71,289 decreased to approximately $62,668 as of June 30, 2024.
Other (expense) income
Other (expense) income totaled ($22.8) million and $14.4 million for the three months ended June 30, 2025 and 2024, respectively. The decrease of $37.2 million was primarily driven by: (i) a $35.6 million decrease in gain on derivatives related to our Bitcoin redemption option and call options, (ii) a $2.4 million increase in interest expense due to an increase in the amount of average borrowing in 2025, and (iii) a $1.4 million decrease in equity in earnings of King Mountain JV due to the impact of the halving event in April 2024 on Bitcoin Mining revenue. This was slightly offset by a $2.3 million increase in foreign exchange gain due to a strengthening of Canadian dollar to U.S. dollar exchange rate related to our net U.S. dollar denominated liability position in our Canadian dollar functional currency subsidiaries.
Income tax
Our income tax provision was $27.6 million and our income tax benefit was $1.9 million for the three months ended June 30, 2025 and 2024, respectively. This $29.5 million increase was primarily due to deferred taxes related to the gain on digital assets for the three months ended June 30, 2025.

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Six Months Ended June 30, 2025 and 2024
​

​

​

​

​

​

​

​

​

​

​
​
Six Months Ended
 
​
​

​
​
June 30,
​
​
Increase

(in USD thousands)
    
2025
    
2024
    
​
(Decrease)

Revenue:
​
​
​
​
​
​
​
​
​

Power
​
$
9,872
​
$
20,468
​
$
(10,596)

Digital Infrastructure
​
​
2,829
​
​
11,108
​
​
(8,279)

Compute
​
​
50,413
 
​
47,933
​
​
2,480

Other
​
​
—
​
​
7,447
​
​
(7,447)

Total revenue
​
 
63,114
 
​
86,956
​
​
(23,842)

​
​
​
​
​
​
​
​
​
​

Cost of revenue (exclusive of depreciation and amortization shown below):
​
​
​
​
​
​
​
​
​

Cost of revenue – Power
​
​
8,628
​
​
9,082
​
​
(454)

Cost of revenue – Digital Infrastructure
​
​
3,679
​
​
8,960
​
​
(5,281)

Cost of revenue – Compute
​
​
28,128
​
​
26,356
​
​
1,772

Cost of revenue – Other
​
​
—
​
​
4,385
​
​
(4,385)

Total cost of revenue
​
​
40,435
​
​
48,783
​
​
(8,348)

​
​
​
​
​
​
​
​
​
​

Operating expenses (income):
​
 
​
​
​
​
​
​
​

Depreciation and amortization
​
​
34,357
​
​
23,003
​
​
11,354

General and administrative expenses
​
​
51,217
​
​
37,898
​
​
13,319

Gains on digital assets
​
​
(105,246)
 
​
(202,732)
​
​
97,486

Loss (gain) on sale of property and equipment
​
​
2,142
 
​
(190)
​
​
2,332

Total operating income
​
​
(17,530)
​
​
(142,021)
​
​
124,491

Operating income
​
​
40,209
​
​
180,194
​
​
(139,985)

​
​
​
​
​
​
​
​
​
​

Other income (expense):
​
 
​
​
​
​
​
​
​

Foreign exchange gain (loss)
​
​
3,123
​
​
(1,679)
​
​
4,802

Interest expense
​
​
(15,865)
​
​
(12,293)
​
​
(3,572)

Asset contribution costs
​
​
(22,780)
​
​
—
​
​
(22,780)

Gain on derivatives
​
​
2,459
​
​
17,219
​
​
(14,760)

Gain on other financial liability
​
​
958
​
​
—
​
​
958

Equity in earnings of unconsolidated joint venture
​
 
2,429
 
​
6,962
​
​
(4,533)

Total other (expense) income
​
 
(29,676)
 
​
10,209
​
​
(39,885)

​
​
 
​
​
​
​
​
​
​

Income from continuing operations before taxes
​
​
10,533
​
​
190,403
​
​
(179,870)

​
​
​
​
​
​
​
​
​
​

Income tax provision
​
​
(7,369)
​
​
(2,522)
​
​
(4,847)

​
​
​
​
​
​
​
​
​
​

Net income from continuing operations
​
$
3,164
​
$
187,881
​
$
(184,717)

​
​
​
​
​
​
​
​
​
​

Loss from discontinued operations (net of income tax of nil and nil, respectively)
​
​
—
​
​
(9,364)
​
​
9,364

​
​
​
​
​
​
​
​
​
​

Net income
​
​
3,164
​
​
178,517
​
​
(175,353)

​
​
​
​
​
​
​
​
​
​

Less: Net loss attributable to non-controlling interests
​
​
259
​
​
493
​
​
(234)

Net income attributable to Hut 8 Corp.
​
$
3,423
​
$
179,010
​
$
(175,587)

​
​
​
​
​
​
​
​
​
​

Net income
​
$
3,164
​
$
178,517
​
$
(175,353)

Other comprehensive income (loss):
​
​
​
​
​
​
​
​
​

Foreign currency translation adjustments
​
​
41,079
​
​
(18,436)
​
​
59,515

Total comprehensive income
​
​
44,243
​
​
160,081
​
​
(115,838)

Less: Comprehensive loss attributable to non-controlling interest
​
​
204
​
​
557
​
​
(353)

Comprehensive income attributable to Hut 8 Corp.
​
$
44,447
​
$
160,638
​
$
(116,191)

​
​

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Adjusted EBITDA reconciliation:
​
​

​

​

​

​

​

​

​

​

​

​
​
Six Months Ended
​
​
​

​
    
June 30,
 
Increase

(in USD thousands)
​
2025
    
2024
     
(Decrease)

Net income
​
$
3,164
​
$
178,517
​
$
(175,353)

Interest expense
​
 
15,865
​
​
12,293
​
​
3,572

Income tax provision
​
 
7,369
​
​
2,522
​
​
4,847

Depreciation and amortization
​
 
34,357
​
​
23,003
​
​
11,354

Share of unconsolidated joint venture depreciation and amortization (1)
​
 
11,028
​
​
13,186
​
​
(2,158)

Foreign exchange (gain) loss
​
​
(3,123)
​
​
1,679
​
​
(4,802)

Losses (gains) on sale of property and equipment
​
​
2,142
​
​
(190)
​
​
2,332

Gain on derivatives
​
​
(2,459)
​
​
(17,219)
​
​
14,760

Gain on other financial liability
​
​
(958)
​
​
—
​
​
(958)

Non-recurring transactions (2)
​
​
5,224
​
​
4,336
​
​
888

Asset contribution costs
​
​
22,780
​
​
—
​
​
22,780

Loss from discontinued operations (net of income tax benefit of nil and nil, respectively)
​
​
—
​
​
9,364
​
​
(9,364)

(Income) loss attributable to non-controlling interests
​
​
(3,313)
​
​
493
​
​
(3,806)

Stock-based compensation expense
​
 
11,433
​
​
11,484
​
​
(51)

Adjusted EBITDA
​
$
103,509
​
$
239,468
​
$
(135,959)

(1) Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investments in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.
(2) Non-recurring transactions for the six months ended June 30, 2025 primarily represent approximately $4.8 million of American Bitcoin related transaction costs, and $0.4 million of restructuring costs. Non-recurring transactions for the six months ended June 30, 2024 represent approximately $1.5 million of miner relocation costs, $3.5 million of restructuring costs, $1.5 million related to the Nar North transaction, offset by a $2.2 million tax refund.
Revenue
Total revenue for the six months ended June 30, 2025 and 2024 was $63.1 million and $87.0 million, respectively, and consisted of Power, Digital Infrastructure, Compute, and Other.
Power
Power revenue was $9.9 million and $20.5 million for the six months ended June 30, 2025 and 2024, respectively. This $10.6 million decrease was primarily driven by an $16.1 million decrease in Managed Services revenue due to the termination of the Ionic managed services agreement in December 2024. This decrease was partially offset by a $5.5 million increase in electricity sales through the Far North JV due to an increase in electricity demand during 2025.
Digital Infrastructure
Digital Infrastructure revenue was $2.8 million and $11.1 million for the six months ended June 30, 2025 and 2024, respectively. This $8.3 million decrease was primarily driven by an $8.3 million decrease in ASIC Colocation revenue as a result of the termination of our colocation agreement with Ionic during the fourth quarter of 2024 and a $0.3 million decrease in CPU Colocation revenue due to customer churn.
Compute
Compute revenue was $50.4 million and $47.9 million for the six months ended June 30, 2025 and 2024, respectively. This $2.5 million increase was primarily driven by a $4.6 million increase in revenue from our GPU-as-a-Service offering, which launched in September 2024. This increase was partially offset by a $1.6 million decrease in Bitcoin mining revenue (which is under American Bitcoin beginning April 1, 2025), largely due to a decrease in Bitcoin mined (443 Bitcoin mined during the six months ended June 30, 2025 versus 803 Bitcoin mined during the six months ended June 30, 2024). The decrease in Bitcoin mined was due to reduced uptime at our Medicine Hat and Salt Creek sites in order to complete our fleet upgrade. The decrease was also due to an increase in network difficulty and the halving event in April 2024. These increases in Bitcoin mining revenue were partially offset by an increase in the average revenue per Bitcoin mined from $55,105 to $96,321. The increase was also offset by a $0.5 million decrease in revenue from our Data Center Cloud operations.

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Other
Other revenue was nil and $7.4 million for the six months ended June 30, 2025 and 2024, respectively. This $7.4 million decrease was due to no equipment sales during the six months ended June 30, 2025, while there was $7.4 million of equipment sales during the six months ended June 30, 2024.
Cost of revenue
Total cost of revenue was $40.4 million and $48.8 million for the six months ended June 30, 2025 and 2024, respectively, and consisted of Power, Digital Infrastructure, Compute, and Other.
Power
Power cost of revenue was $8.6 million and $9.1 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in cost of revenue of $0.5 million, primarily due to a decrease in our Managed Services related operating costs of $4.4 million due to the termination of our Ionic managed services agreement in December 2024, partially offset by a $3.9 million increase in cost of revenue related to the increase in electricity sales by the Far North JV.
Digital Infrastructure
Digital Infrastructure cost of revenue was $3.7 million and $9.0 million for the six months ended June 30, 2025 and 2024, respectively. This $5.3 million decrease was primarily driven by a $6.0 million decrease in ASIC Colocation cost of revenue as a result of the termination of our colocation agreement with Ionic during the fourth quarter of 2024, partially offset by a $0.7 million increase in the cost of revenue related to CPU Colocation operations due to higher electricity and connectivity costs.
Compute
Compute cost of revenue was $28.1 million and $26.4 million for the six months ended June 30, 2025 and 2024, respectively. This $1.7 million increase was primarily driven by a $1.7 million increase in costs related to our new GPU-as-a-Service offering, launched in September 2024. 
Other
Other cost of revenue was nil and $4.4 million for the six   months ended June 30, 2025 and 2024, respectively. This $4.4 million decrease was a result of no equipment sold for the six months ended June 30, 2025.
Depreciation and amortization
Depreciation and amortization expense was $34.4 million and $23.0 million for the six months ended June 30, 2025 and 2024, respectively. The $11.4 million increase was primarily driven by increased depreciation as a result of our fleet upgrade. Additionally, there was increased AI GPU depreciation due to launching the GPU-as-a-Service offering in September 2024.
General and administrative expenses
G&A expenses were $51.2 million and $37.9 million for the six months ended June 30, 2025 and 2024, respectively. The $13.3 million increase in G&A expenses was driven by: (i) a $7.1 million increase in salary and benefit costs due to added headcount to support our growth initiatives, (ii) a $4.8 million increase in transaction costs related to the ABTC Merger transaction, (iii) a $3.1 million increase in professional fees primarily due to legal and tax expenses incurred to support the execution of our growth plans, (iv) a $1.9 million increase in other G&A expenses, and (v) a $2.2 million increase in sales tax expenses, as we received a $2.2 million refund of sales taxes in Canada during the six months ended June 30, 2024. These increases were offset by (i) a $3.3 million decrease in restructuring expenses, (ii) a $1.4 million decrease in Far North JV acquisition costs, and (iii) a $1.1 million decrease in insurance expense.

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Gains on digital assets
Gains on digital assets were $105.3 million and $202.7 million for the six months ended June 30, 2025 and 2024, respectively. The gains were due to the increase in Bitcoin price from approximately $93,354 as of December 31, 2024 compared to approximately $107,173 as of June 30, 2025 while the price of Bitcoin as of December 31, 2023 of approximately $42,288 increased to approximately $62,668 as of June 30, 2024.
Other expense (income)
Other expense was $29.7 million for the six months ended June 30, 2025, compared to other income of $10.2 million for the six months ended June 30, 2024. The decrease of $39.9 million was primarily driven by (i)  $22.8 million in asset contribution costs related to non-controlling interest portion of American Bitcoin, (ii) a $14.8 million decrease in gains on derivatives related to our Bitcoin redemption option and call options, (iii) a $3.6 million increase in interest expense due to an increase in the amount of average borrowing in 2025, and (iv) a $4.5 million decrease in equity in earnings of King Mountain JV due to the impact of the halving event in April 2024 on Bitcoin Mining revenue. This was slightly offset by (i) a $1.0 million gain on other financial liability, and (ii) a $4.8 million increase in foreign exchange gain due to the strengthening of the Canadian dollar to U.S. dollar exchange rate related to our net U.S. dollar denominated liability position in our Canadian dollar functional currency subsidiaries.
Income tax
Our income tax provision was $7.4 million for the six months ended June 30, 2025, compared to $2.5 million for the six months ended June 30, 2024. The increase in income tax provision was primarily due to deferred taxes related to the gains on digital assets for the six months ended June 30, 2025.
Loss from discontinued operations
Loss from discontinued operations was nil and $9.4 million for the six months ended June 30, 2025 and 2024, respectively. On March 6, 2024, we announced the closure of our Drumheller site in Alberta, Canada in connection with restructuring and optimization initiatives designed to strengthen financial performance. Of the $9.4 million loss related to the closure of our Drumheller site, the impairment of the long term assets contributed $6.1 million and the remaining $3.3 million loss was from other operational activities.
King Mountain JV
The King Mountain JV is a 50/50 joint venture with one of the world’s largest renewable energy producers. The King Mountain JV has 280 MW of self-mining and hosting operations located behind-the-meter at a wind farm in McCamey, Texas.
As of June 30, 2025, the King Mountain JV owned approximately 18,000 miners for self-mining (about 1.8EH/s) and hosted approximately 67,200 miners (about 7.8 EH/s) for a single hosting customer at its wholly-owned King Mountain site, which has a total capacity of 280 MW.   
We account for the King Mountain JV using the equity method of accounting, resulting in reporting the King Mountain JV as an unconsolidated joint venture. Additionally, our 50% portion of any distributions from the King Mountain JV are used to pay down the TZRC Secured Promissory Note. See Note 9.  Investment in unconsolidated joint venture  and Note 10.  Loans, notes payable, and other financial liabilities  to the consolidated financial statements found elsewhere in this Quarterly Report for additional information on the King Mountain JV and TZRC Secured Promissory Note.

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Below are the condensed consolidated income statements for the King Mountain JV for the three and six months ended June 30, 2025 and 2024:
​

​

​

​

​

​

​

​

​

​

​

​

​

Condensed Consolidated Income Statement

​
​
Three Months Ended
​
Six Months Ended

​
    
June 30,
    
June 30,

(in USD thousands)
​
2025
​
2024
​
2025
​
2024

Total revenue, net
​
$
30,532
​
$
33,046
​
$
64,445
​
$
74,240

Gross profit
​
​
14,472
​
​
17,726
​
​
29,305
​
​
39,321

Net (loss) income
​
​
(1,358)
​
​
1,394
​
​
(2,114)
​
​
6,952

Net (loss) income attributable to investee
​
​
(679)
​
​
697
​
​
(1,057)
​
​
3,476

​
Our board of directors and management team also evaluate Adjusted EBITDA for the King Mountain JV, which is a non-GAAP financial measure. We define Adjusted EBITDA as net (loss) income before depreciation and amortization and interest income. We use Adjusted EBITDA to assess the King Mountain JV’s financial performance because it allows us to compare the operating performance on a consistent basis across periods by removing the effects of the King Mountain JV’s capital structure.
​
Net (loss) income is the GAAP measure most directly comparable to Adjusted EBITDA. This non-GAAP financial measure should not be considered as an alternative to the most directly comparable GAAP financial measure. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
​

​

​

​

​

​

​

​

​

​

​

​

​
Three Months Ended
​
Six Months Ended

​
June 30,
​
June 30,

(in USD thousands)
2025
​
2024
​
2025
​
2024

Net (loss) income
$
(1,358)
​
$
1,394
​
$
(2,114)
​
$
6,952

Depreciation and amortization
 
15,823
 
 
15,674
​
 
31,528
 
 
31,107

Interest income
​
(1,102)
​
​
(440)
​
​
(2,077)
​
​
(915)

Adjusted EBITDA
$
13,363
​
$
16,628
​
$
27,337
​
$
37,144

​
Liquidity and Capital Resources
Our primary sources of liquidity include our cash and cash equivalents, debt facilities, strategic Bitcoin reserve, equity sales, and the cash flows generated from operations. Historically, our primary cash needs have been for working capital to support equipment financing, including the purchase of additional Bitcoin miners, and growth initiatives, including infrastructure purchases, development opportunities, and acquisitions.
​
On December 4, 2024, we entered into a Controlled Equity Offering Sales Agreement establishing an at-the-market offering, allowing us to offer and sell up to $500.0 million of our common stock from time to time (the “2024 ATM”). Concurrently, we launched a $250.0 million stock repurchase program enabling us to repurchase up to 4,683,936 shares of our common stock (representing 5.0% of our issued and outstanding common stock as of December 4, 2024) within twelve months of launch.
​
In June 2025, American Bitcoin sold and issued 11,002,954 shares of its Class A common stock for aggregate gross proceeds in cash and Bitcoin of $220.1 million, and aggregate net proceeds of approximately $215.3 million after deducting certain fees and expenses incurred in connection with the issuance, including aggregate commissions of $4.8 million. $10.0 million worth of the shares were sold for consideration of Bitcoin in lieu of cash at an exchange rate of one Bitcoin to $104,000. In July 2025, American Bitcoin used $200.0 million of these proceeds to purchase approximately 1,677 Bitcoin at an average price of approximately $119,280.
​

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In June 2025, we amended our Credit Agreement with Coinbase to, among other things: (i) extend the final maturity date to June 16, 2026; (ii) increase the principal amount by up to $65.0 million of additional borrowings available through July 30, 2025, if any, resulting in a total principal amount of up to $130.0 million; (iii) modify the interest rate such that amounts that are borrowed will bear interest at a rate equal to 9.0%; and (iv) remove the right for Coinbase to receive an early termination fee for any repayment or prepayment by the Company prior to the final maturity date.
During the six months ended June 30, 2025, we issued and sold 4,205,019 shares of our common stock under the 2024 ATM for gross proceeds of $113.1 million, incurred issuance costs of $1.1 million, and repurchased nil shares of our common stock under the stock repurchase program.
During the period from July 1, 2025 to August 6, 2025, the Company issued and sold 1,000,000 shares of its common stock under the 2024 ATM for gross proceeds of $21.1 million and incurred issuance costs of $0.2 million.
Our ability to meet our anticipated cash requirements will depend on various factors including our ability to maintain our existing business, enter into new lines of business, provide new offerings, compete with existing and new competitors in existing and new markets and offerings, acquire new businesses or pursue strategic transactions, and respond to global and domestic economic, geopolitical, social conditions and their impact on demand for our offerings.
​
We believe that cash flows generated from operating activities, our strategic Bitcoin reserve, and the 2024 ATM will meet our anticipated cash requirements in the short-term. On a long-term basis, we plan to rely on access to the capital markets for any long-term funding not provided by operating cash flows, cash on hand, and our strategic Bitcoin reserve.
​
Cash Flows
The following table summarizes our cash flows for the periods indicated:
​

​

​

​

​

​

​

​
​
Six Months Ended

​
    
June 30,

(in USD thousands)
    
2025
​
2024

Cash flows used in operating activities
​
$
(82,636)
​
$
(42,693)

Cash flows (used in) provided by investing activities
​
$
(101,480)
​
$
34,992

Cash flows provided by financing activities
​
$
320,764
​
$
152,862

​
Operating Activities
Net cash used in operating activities was $82.6 million and $42.7 million for the six months ended June 30, 2025 and 2024, respectively. Net cash used in operating activities for the six months ended June 30, 2025 resulted from net income and related adjustments of $59.6 million in addition to unfavorable changes in working capital of $23.0 million. Net cash used in operating activities for the six months ended June 30, 2024 resulting from net income and related adjustments of $29.5 million and unfavorable changes in working capital of $13.2 million.
Investing Activities
Net cash used in investing activities totaled $101.5 million for the six   months ended June 30, 2025, primarily consisting of $108.7 million in property and equipment purchases, and $0.9 million related to other intangibles purchases. These outflows were partially offset by $3.7 million in proceeds from Bitcoin sales, and $4.4 million in proceeds from the sale of property and equipment. Net cash provided by investing activities totaled $35.0 million for the six   months ended June 30, 2024, primarily consisting of $53.1 million in proceeds from Bitcoin sales, $4.2 million in proceeds from the sale of property and equipment and $1.1 million in cash added as part of the Far North JV acquisition. These inflows were partially offset by $17.0 million in property and equipment purchases, and $6.4 million cash payment in exchange for shares in Ionic.

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Financing Activities
Net cash provided by financing activities was $320.8 million for the six   months ended June 30, 2025, primarily consisting of $205.3 million in net cash proceeds from the issuance and sale of American Bitcoin’s Class A common stock, $112.0 million in net proceeds from the issuance of common stock through our 2024 ATM and $3.5 million in proceeds from funding in relation to our GPU-as-a-Service business segment. Net cash provided by financing activities was $152.9 million for six   months ended June 30, 2024, primarily consisting of $150.0 million in proceeds from the Coatue convertible note, $20.8 million in proceeds from covered call options premium, and $14.8 million in proceeds from the Coinbase loan. This was partially offset by $32.3 million in repayment of loans and notes payable.
Critical Accounting Policies and Estimates
Our management’s discussion and analysis of our financial condition and results of operations is based on our Unaudited Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these Unaudited Condensed Consolidated Financial Statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. We evaluate our estimates and assumptions on an ongoing basis and base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for the judgments we make about the carrying value of assets and liabilities that are not readily apparent from other sources. Because these estimates can vary depending on the situation, actual results may differ from these estimates. Making estimates and judgments about future events is inherently unpredictable and is subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could have a material impact on our results of operations, financial position, and statement of cash flows.
There have been no material changes to our critical accounting policies and estimates disclosed in the Annual Report other than as described in Note 2.  Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements  in our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes.
Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition, determining the useful lives and recoverability of long-lived assets, impairment analysis of finite-lived intangibles and digital assets, and current and deferred income tax assets (including the associated valuation allowance) and liabilities.
Regulatory Update
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law, which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international), and provisions allowing accelerated tax deductions for qualified property and research expenditures. We are currently evaluating the potential impacts that the OBBBA may have on our financial position.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market Price Risk of Bitcoin
We hold a significant amount of Bitcoin; therefore, we are exposed to the impact of market price changes in Bitcoin.
As of June 30, 2025, we held 10,667 Bitcoin, and the fair value of a single Bitcoin was approximately $107,173. Therefore, the fair value of our Bitcoin holdings as of June 30, 2025 was approximately $1.14 billion. Declines in the fair market value of Bitcoin will impact the cash value that would be realized if we were to sell our Bitcoin for cash, therefore having a negative impact on our liquidity.

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Custodian Risk
Our Bitcoin is held with third-party custodians, Coinbase Custody, NYDIG, Anchorage, and BitGo, which we select based on various factors, including their financial strength and industry reputation. Custodian risk refers to the potential loss, theft, or misappropriation of our Bitcoin assets due to operational failures, cybersecurity breaches, or financial difficulties experienced by these third parties. Although we periodically monitor the financial health, insurance coverage, and security measures of our custodians, reliance on such third parties inherently exposes us to risks that we cannot fully mitigate.
Credit Risk
Credit risk arises from our practice of pledging Bitcoin as collateral in transactions with counterparties. We mitigate this risk by engaging with counterparties that we believe possess strong creditworthiness based on their size, credit quality, and reputation, among other factors. During the six months ended June 30, 2025, we have not incurred any material loss from such transactions. However, there remains a risk that a counterparty could default on its obligations to us, which might result in a material loss. We continually assess the credit risk associated with our counterparties and, if necessary, recognize a loss provision or write-down. Credit risk also arises from us placing our cash and demand deposits in financial institutions. Although we strive to limit our exposure by placing cash and demand deposits with financial institutions with a high credit standing, there can be no assurances that we are able to mitigate our credit risk.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
We have one loan that maintains a variable interest rate, the TZRC Secured Promissory Note, which includes a maximum interest rate of 15.25%. As a result, changes in market interest rates could affect our operations over certain periods and may also impact our ability to finance projects. For more information regarding the TZRC Secured Promissory Note, see Note 10. L oans, notes payable, and other financial liabilities to the Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report.
​
In addition, our exposure to interest rate risk relates to our ability to earn interest income on cash balances at variable rates. Changes in short term interest rates are not expected to have a significant effect on the fair value of our cash account.
​
Tariff Risk
Changes in government and economic policies, incentives, or tariffs may also have an impact on equipment that we import. While the final scope and application of recently announced changes in U.S trade policy remain uncertain at this time, higher tariffs on imports and subsequent retaliatory tariffs could adversely impact our ability to import equipment at levels that are cost effective. We plan to continue to adjust accordingly to such developments.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported within the specified time periods. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in the reports that we file and submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to enable timely decisions regarding required disclosure.
As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer, with the participation of our management, have concluded that our disclosure controls and procedures were not effective as of June 30, 2025 due to the identification of material weaknesses in our internal control over financial reporting, as further described in Item 9A of our Annual Report and below.
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Our management, including our Chief Executive Officer and Chief Financial Officer, recognize that any system of disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance rather than absolute assurance of achieving its objectives. The design of a control system must reflect resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation can provide absolute assurance that all control issues or instances of fraud, if any, will be detected. These inherent limitations include the possibility of faulty judgments, errors or mistakes, and the potential for controls to be circumvented by individual acts, collusion among employees, or management override. Moreover, the design of any control system is based on certain assumptions regarding future events, and there is no guarantee that any design will succeed under all potential future conditions. Over time, controls may become inadequate due to changes in conditions or deterioration in compliance with policies or procedures. Consequently, misstatements due to error or fraud may occur and not be detected.
Material Weaknesses in Internal Control and Plan for Remediation
Based on our evaluation, management previously identified the following material weaknesses in internal control over financial reporting that remained open as of December 31, 2024:
● our control pertaining to the review was not operating effectively as it relates to the calculation of the deferred tax provision for Bitcoin held in an international jurisdiction; and
● our control pertaining to the review of a complex accounting transaction related to our BITMAIN miner purchase agreement was not operating effectively.

These material weaknesses did not result in a material misstatement to our previously issued Consolidated Financial Statements, nor in the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report.
Remediation
Our board of directors and management take internal control over financial reporting and the integrity of our financial statements seriously. Management continues to work to improve our controls related to the material weaknesses described above. Management will continue to implement measures to remediate the material weaknesses, such that these controls are designed, implemented, and operating effectively. In order to achieve the timely implementation of the above, management has commenced the following actions and will continue to assess additional opportunities for remediation on an ongoing basis:
● replaced our existing third-party advisor who prepared and supported our review of the deferred taxes calculation with an advisor who has additional expertise in calculating deferred income taxes in the international jurisdictions in which we operate;
● replaced our existing third-party advisor who supported our review of the BITMAIN miner purchase agreement with an advisor who has additional expertise in Bitcoin-related transactions; and
● continue developing and implementing enhanced controls related to the review of certain of our third-party advisors with respect to their review of certain complex transactions.

While these remedial actions are designed to correct the material weaknesses, changes to internal control over financial reporting require operation for a sufficient period of time in order for management to evaluate and test the operating effectiveness. Management will continue to monitor and evaluate the effectiveness of the change for a sufficient period of time prior to concluding that these controls are designed and operating effectively, at which time, the material weaknesses can be considered remediated.
Changes in Internal Control Over Financial Reporting
Other than the remediation efforts that are in process, there were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2025 that materially affected, or that are reasonably likely to materially affect our internal control over financial reporting.

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The material weaknesses cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. Therefore, to remediate our existing material weaknesses, we require additional time to complete the implementation and testing of our remediation plans and demonstrate the effectiveness of our remediation efforts.
There were no changes in our internal control over financial reporting that occurred during the six months ended June 30, 2025 that materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings
For a description of material legal proceedings in which we are involved, see Note 19. 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.
Item 1A. Risk Factors
Other than as set forth below, there have been no material changes from the risk factors set forth in Part I, Item IA 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 herein and 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.
The completion of the ABTC Merger is subject to conditions, including certain conditions that may not be satisfied on a timely basis, if at all, and we may not realize some or all of the expected benefits of the ABTC Merger.
On May 9, 2025, American Bitcoin entered into a definitive merger agreement to go public with Gryphon pursuant to which Gryphon will acquire American Bitcoin in a stock-for-stock merger transaction. At the closing of the ABTC Merger, the issued and outstanding capital stock of American Bitcoin will be canceled and converted into the right to receive newly issued stock representing, in the aggregate, approximately 98% of the issued and outstanding stock of Gryphon as of immediately following the ABTC Merger. Upon the completion of the ABTC Merger, Gryphon is expected to be renamed “American Bitcoin Corp,” and is expected to trade on Nasdaq under the ticker symbol “ABTC.” Immediately following the completion of the ABTC Merger transaction, we will beneficially own approximately 64.37% of the then-outstanding capital stock of the combined company, on a fully diluted basis, which is expected to represent approximately 80.00% of the total combined voting power of the combined company capital stock.
However, the timing and completion of the ABTC Merger is not assured and is subject to risks, including the risk that the approval of the ABTC Merger by Gryphon’s stockholders is not obtained, the combined company’s application for listing its Class A common stock on The Nasdaq Capital Market is not approved, or other closing conditions are not satisfied. If the ABTC Merger is not completed on the anticipated timeframe or at all, we could be subject to various risks, including declines in the price of our common stock.  Furthermore, any failure to complete the ABTC Merger will delay (potentially indefinitely) the timing for American Bitcoin to effectuate a public listing of its securities. As American Bitcoin’s business plan is dependent on raising substantial additional capital, if the ABTC Merger is not consummated, American Bitcoin may not have sufficient access to capital markets to execute on its business plans, which could have a material adverse effect on its and our business, financial condition, cash flows and results of operations. While we do not presently have any intention to sell our stake in American Bitcoin, any failure or delays in achieving a public listing for American Bitcoin could have the effect of limiting or delaying our ability to liquidate our stake in American Bitcoin. These or other developments could cause American Bitcoin and us to realize some or all of the expected benefits of the ABTC Merger on a different timeline than expected, or not at all, which could have a material adverse effect on its and our business, financial condition, cash flows and results of operations. If we are unable to complete the ABTC Merger, we will have incurred substantial costs without realizing the benefits of such transaction.

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Furthermore, there can be no assurance that each separate company will be successful as a standalone public company. Our management team, including our Chief Executive Officer and Chief Strategy Officer, are expected to serve as Executive Chairman and as Chief Executive Officer and Director, respectively, of the combined company following the ABTC Merger, which may divert management attention from our business. Moreover, completion of the ABTC Merger will result in independent public companies that are smaller, less diversified companies with more limited businesses concentrated in their respective industries than prior to the transaction. As a result, each company may be more vulnerable to global economic trends, geopolitical risks, demand or supply shocks, and changing industry or market conditions, which could have a material adverse effect on its business, financial condition, cash flows and results of operations. Additionally, the ABTC Merger may result in the duplication of certain costs and expenses, such as public company operating and compliance costs, that would have not been duplicated if our business and ABTC were combined in a single company. Additionally, we cannot predict whether at the closing of the ABTC Merger or over time the market value of our common stock and the Class A common stock of the new combined company after the ABTC Merger will be, in the aggregate, less than, equal to or greater than the market value of our common stock prior to the ABTC Merger. There is no guarantee that the value of our stake in American Bitcoin will be fully reflected in the price of our common stock, or at all. Investors holding our common stock may also sell our common stock or the combined company’s common stock to the extent that it does not match their investment strategies, which may cause a decline in the market price of such common stock.
Furthermore, as American Bitcoin is our majority-owned subsidiary, to the extent the risks to American Bitcoin’s business are realized, it could result in material decreases in the value of our interest in American Bitcoin. For so long as American Bitcoin’s financial results are consolidated in our financial statements, any such event could also have a material adverse effect on our business, financial condition, and results of operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Except as previously reported in our Current Report on Form 8-K filed with the SEC on June 30, 2025, there were no unregistered sales of equity securities by us during the three months ended June 30, 2025.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Amendment to the Coinbase Loan
On August 1, 2025, Hut 8 Mining Corp., our wholly owned subsidiary (the “Borrower”), entered into Amendment No. 1 to the Third Amended and Restated Credit Agreement between the Borrower, as borrower, and Coinbase, as lender, collateral agent, and administrative agent (the “Coinbase Amendment”). The Coinbase Amendment amended our existing credit agreement with Coinbase, dated as of June 26, 2023 and subsequently amended and restated on January 12, 2024, June 17, 2024 and June 16, 2025 (the “Third Amended and Restated Credit Agreement”).
The Coinbase Amendment amends the Third Amended and Restated Credit Agreement to extend the availability period of additional principal borrowings from July 30, 2025 to through the final maturity date of June 16, 2026, provided that (i) five business days’ notice is given prior to the borrowing and (ii) starting on September 30, 2025, any undrawn portion under the agreement is subject to a commitment fee of 1.5% per annum. All other material terms, including payment terms and acceleration provisions, remained unchanged from the Third Amended and Restated Credit Agreement.
The funds made available pursuant to the Coinbase Amendment are expected to be used for general corporate purposes. The Borrower’s obligations under the Coinbase Amendment are secured by the Borrower’s interest in certain Bitcoin held in the custody of Coinbase Custody Trust Company, LLC (“Coinbase Custody”) and Coinbase’s recourse is limited to such Bitcoin held in the custody of Coinbase Custody. Coinbase Custody will not charge the Borrower any custodial fees for such Bitcoin collateral.

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This disclosure is provided in this Part II, Item 5 in lieu of disclosure under Items 1.01 and 2.03 of Form 8-K.
Vega Miner Purchase
On August 5, 2025, Zephyr Infrastructure LLC, our indirect wholly owned subsidiary (“Zephyr”), assigned its option to purchase up to approximately 17,280 Bitmain Antminer U3S21EXPH ASIC miners (collectively, the “Bitmain Miners”), representing a total of approximately 14.86 EH/s, to American Bitcoin. American Bitcoin exercised the option on August 5, 2025 and entered into an On-Rack Sales and Purchase Agreement (the “ABTC Bitmain Purchase Agreement”) with Bitmain Technologies Georgia Limited (“Bitmain”) to purchase the Bitmain Miners in one or more tranches for a total purchase price of up to approximately $320 million (subject to adjustments, offsets and costs as set forth in the ABTC Bitmain Purchase Agreement).
Concurrently with the execution of the ABTC Bitmain Purchase Agreement, American Bitcoin purchased 16,299 of the Bitmain Miners, representing a total of approximately 14.02 EH/s, for a total purchase price of approximately $314 million, paid through the pledge of Bitcoin at a mutually agreed upon fixed price. Such purchase price was reduced by the application of a deposit and certain expenses of approximately $46 million previously paid to Bitmain by Zephyr and which ABTC has agreed to repay to Zephyr on or prior to December 31, 2025. The remaining Bitmain Miners must be purchased by ABTC on or before October 5, 2025, and may be purchased with cash and/or by pledging additional Bitcoin. The Bitcoin pledged under the ABTC Bitmain Purchase Agreement has a redemption period of 24 months from each pledge date.
This disclosure is provided in this Part II, Item 5 in lieu of disclosure under Items 1.01 and 2.01 of Form 8-K.
10b5-1 Trading Arrangements
During the quarter ended June 30, 2025, none of our officers or directors adopted , modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K.
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Item 6. Exhibits

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Exhibit
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Incorporated by Reference

Number
    
Description
    
Form
    
Exhibit
    
Filing Date

3.1
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Amended and Restated Certificate of Incorporation of Hut 8 Corp.
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8-K
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3.1
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12/01/2023

3.2
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Amended and Restated Bylaws of Hut 8 Corp.
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8-K
​
3.2
​
12/01/2023

10.1*
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Third Amended and Restated Credit Agreement, dated as of June 16, 2025, between Hut 8 Mining Corp. and Coinbase Credit, Inc.
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8-K
​
10.1
​
06/23/2025

31.1
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Certification of Principal Executive Officer of Hut 8 Corp. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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31.2
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Certification of Principal Financial and Accounting Officer of Hut 8 Corp. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32.1**
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Certification of Principal Executive Officer and Principal Financial and Accounting Officer of Hut 8 Corp. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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101
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Inline Interactive Data File
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104
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Cover Page Interactive Data File
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​
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*
Pursuant to Item 601(b)(10), as applicable, of Regulation S-K, certain portions of this exhibit were redacted. Hut 8 Corp. hereby agrees to furnish a copy of any redacted information to the SEC upon request.

**
Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act (whether made before or after the date of the Quarterly Report), irrespective of any general incorporation language contained in such filing.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Dated: August 7, 2025
​
HUT 8 CORP.

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​
​

​
By:
/s/ Sean Glennan

​
​
Sean Glennan

​
​
Principal Financial Officer and Authorized Signatory

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