If you thought crypto mining was dead money, Hut 8 (TSX:HUT) is here to prove otherwise. Shares of the TSX-listed energy and infrastructure firm have surged more than 100% in the past year, and the Canadian stock just delivered another quarter of blockbuster results. The question now is whether it’s still worth getting in, or if the easy money has already been made.
Into earnings
Let’s start with the numbers. In the second quarter (Q2) of 2025, Hut 8 reported $41.3 million in revenue and a staggering $137.5 million in net income. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) clocked in at $221.2 million. That’s a sharp reversal from the prior year, when the Canadian stock posted a loss of $72.2 million and negative EBITDA. This turnaround is driven not only by higher Bitcoin prices but by a dramatic shift in how the business makes money.
Yet Hut 8 isn’t just a Bitcoin miner anymore. It’s becoming an infrastructure play. Today, it manages more than 1,000 megawatts of energy capacity across North America. And it’s not doing this on a whim; the Canadian stock is locked in long-term contracts for nearly 90% of that capacity. That includes a new five-year agreement with Ontario’s IESO for 310 megawatts and 130 megawatts of services for its mining spin-off, American Bitcoin. This pivot from spot exposure to long-term contracts has brought stability and predictability to a once-volatile business.
More to come
On top of that, Hut 8 is expanding into digital infrastructure in a big way. It just energized a cutting-edge 205-megawatt facility dubbed Vega, designed to bridge the gap between Bitcoin and artificial intelligence (AI) infrastructure. Featuring proprietary liquid cooling technology, Vega should become a major colocation hub for partners like BITMAIN. It’s also a model for future AI data centres, giving Hut 8 exposure to one of the fastest-growing computing trends in the world.
The transformation isn’t happening in a vacuum. Hut 8 aligns itself with powerful allies like Coinbase, Macquarie, Anchorage, and BITMAIN. These are all deeply involved with the business. It’s even spinning off American Bitcoin in a merger with Gryphon Digital, which will soon trade on the Nasdaq. This deal has already attracted $220 million in funding and could unlock more value for Hut 8 shareholders.
Considerations
But it’s not all upside. For one, Hut 8 still operates in a highly cyclical space. The Canadian stock’s performance is tied to the price of Bitcoin, and while that helped it generate $217.6 million in gains on digital assets this past quarter, those gains can reverse quickly. The firm also carries more than $360 million in debt, and while much of that is backed by Bitcoin reserves now worth over $1.1 billion, the volatility of those reserves adds risk. Then there’s the issue of capital intensity. Building massive AI and mining facilities isn’t cheap, and returns may take time to materialize.
Despite the risks, Hut 8’s latest moves signal something bigger. It’s no longer just a speculative mining stock. It’s positioning itself as a real player in the AI and energy infrastructure space, using its Bitcoin business as a springboard. That makes it one of the more compelling picks in the crypto-adjacent universe.
Bottom line
So, is Hut 8 a buy? If you believe in the future of decentralized computing, Bitcoin, or high-performance infrastructure, it’s hard to ignore. The Canadian stock has momentum, revenue diversification, and serious strategic partners. It’s risky, no doubt. But for long-term investors willing to ride the volatility, this may be one of those rare moments when the pivot is real, and the payoff could be huge.
