Hut 8 Stock Slides 9.7% Despite 81% Revenue Surge

Crypto mining and AI infrastructure firm Hut 8 saw its stock drop 9.74 percent to close at $101.16 on Tuesday following its second quarter earnings report. Revenue jumped 81 percent year over year to $74.9 million, but the company still posted a net loss of $177.1 million. The stock managed a slight recovery of 1.29 percent to $102.47 in after hours trading as traders digested the numbers.

Most of the quarterly loss came from paper losses rather than operational failure. The firm recorded $138.6 million in unrealized losses on digital assets. At the same time, core operations improved nicely. Adjusted EBITDA excluding digital assets reached $10.4 million, which is more than double the $4.2 million reported during the same period last year.

Beyond mining, the company is making major waves in the artificial intelligence sector. Contracted IT capacity across its AI campuses reached 949 megawatts, carrying a base term contract value of roughly $26.6 billion. CEO Asher Genoot stated that delivery is now the central priority for the team as they work toward bringing major projects online in early 2027.

Traders will want to watch construction progress on the River Bend and Beacon Point campuses over the coming quarters. While the paper losses weighed down the stock price initially, the massive pipeline of AI lease agreements highlights a major shift in the business model.