Why Hut 8 Stock Fell Wednesday

Hut 8 experiences a dramatic 21.7% drop as Bitcoin prices fall. Read more about the factors affecting Hut 8’s stock performance.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published October 23, 2025 10:00 am EDT

a person watches a downward arrow crash through the floor — Source: Getty Images

Hut 8 Mining (TSX: HUT) stock fell 21.7% on Wednesday, extending its dip that began on October 15, 2025. The stock is down 32% in five and a half days after a 106% rally in 45 days from September 1 to October 14. This is a trend all crypto stocks witnessed as the price of several crypto coins fell.

However, Hut 8 Mining was the top loser on the TSX. Behind the dip was a sharp correction in Bitcoin prices as the U.S. government shutdown entered its 21st day and Donald Trump threatened to impose a 100% tariff on Chinese imports. This created panic, and investors switched from high-risk crypto to safe-haven gold.

Hut 8 is sensitive to Donald Trump’s decisions, as Donald Trump Jr. and Eric Trump own a 20% stake in American Bitcoin, in which Hut 8 holds an 80% stake. American Bitcoin’s share price dropped 10.27% on Wednesday, which also impacted Hut 8.

Although Hut 8 is an energy infrastructure platform that offers power, digital infrastructure, and compute at scale, its key source of profit continues to be the sale of Bitcoin. It had 10,667 Bitcoin held in reserve as of June 30, 2025. Hence, the share price is sensitive to the BTC price.