In search of a Canadian inventory sitting proper on the crossroads of cryptocurrency and synthetic intelligence (AI)? Then Hut 8 (TSX:HUT) is without doubt one of the most enjoyable names to observe. It’s a Canadian inventory that has advanced from a pure-play Bitcoin miner into one thing far more formidable. In a market the place each crypto and AI proceed to dominate headlines, Hut 8 may very well be a significant participant. And with the inventory buying and selling beneath all-time highs, there could also be a compelling alternative right here for long-term buyers.
About Hut 8
Hut 8 made waves when it merged with U.S. Bitcoin to kind a brand new cross-border mining and infrastructure agency. Now working as a extra diversified firm, it’s now not nearly mining Bitcoin. It additionally manages high-performance computing services and is investing closely in powering AI infrastructure. This twin focus might give Hut 8 a singular edge, particularly in a Canadian market the place few different public corporations are positioned in each crypto and AI.
As of writing, the Canadian inventory trades at round $24.50 per share, with a market cap of $2.6 billion. Whereas it has had a risky historical past, latest strikes by the Canadian inventory counsel it’s aiming to turn into extra secure and strategic. In its most up-to-date quarterly earnings report for Q1 2025, Hut 8 posted income of US$21.8 million. Nonetheless, the corporate additionally reported a internet lack of US$134 million and an adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) lack of US$117.7 million. These numbers could elevate eyebrows, however a lot of the loss was tied to the corporate’s aggressive enlargement technique.
This enlargement consists of increase its energy infrastructure to deal with high-performance computing for synthetic intelligence workloads. Hut 8 reported a 79% quarter-over-quarter improve in hashrate and a 37% enchancment in fleet effectivity. It now controls 1,020 megawatts of energy capability and has recognized a future pipeline of over 10,800 megawatts. That sort of energy isn’t only for mining crypto, it’s more and more getting used to assist AI mannequin coaching and large-scale information processing.
Extra to come back
Hut 8 additionally made a key monetary transfer by renegotiating its Bitcoin-backed credit score facility with Coinbase, growing it from US$65 million to US$130 million. The deal locks in a set 9% rate of interest and extends the mortgage maturity to July 2026. It’s a non-dilutive financing choice that offers the Canadian inventory respiratory room and capital to proceed scaling. The phrases additionally embody a no-rehypothecation clause, which means the Bitcoin used as collateral is protected. That’s a sensible, strategic approach to entry money with out placing shareholders liable to dilution.
One other growth price noting is the corporate’s funding in Highrise AI, a brand new division centered on graphics processing unit (GPU)-based AI computing. This enterprise phase offers companies like GPU-as-a-service to third-party corporations constructing large-scale AI techniques. With GPU demand at all-time highs, this may very well be a big income stream down the road. It’s nonetheless early, however Hut 8 is laying the groundwork to turn into a essential a part of the digital infrastructure that powers future tech.
There’s no denying that Hut 8 comes with danger. Its reliance on Bitcoin costs nonetheless drives a lot of the enterprise, and mining is notoriously risky. However by diversifying into AI compute companies and information infrastructure, the Canadian inventory is positioning itself to climate downturns higher than a few of its friends. It’s now not only a speculative crypto play; it’s slowly remodeling right into a Canadian tech infrastructure firm with real-world utility.
Backside line
For Canadian buyers searching for publicity to those two highly effective developments, Hut 8 may simply be the Canadian inventory to observe. It’s nonetheless early in its subsequent chapter, however the steps it’s taking counsel that this may very well be one of the crucial necessary TSX-listed corporations within the digital future. When you imagine in each crypto and AI, that is one funding that places you in the midst of the motion.
