Colocation and crypto data center firm Hut 8 recorded a $134 million quarterly loss moving into 2025, while increasing its overall hashrate by 79 percent, according to its first quarter results.
Hut 8 attributes its hashrate growth to the upgrade of its ASIC fleet, which resulted in a 37 percent increase in efficiency quarter-over-quarter.
Revenues of $21.8 million were followed by net losses totalling $134.3 million, and earnings before interest, tax, depreciation, and amortization of $117.7 million. The firm attributes its losses partly to operational downtime, as well as the 2024 Bitcoin halving, which cut the Bitcoin mining reward by 50 percent.
American Bitcoin, backed by Donald Trump’s sons, Eric Trump and Donald Trump Jr, was acquired by Hut 8 in April, and has since become the focal point for all of Hut 8’s previous Bitcoin mining operations.
Previously, Hut 8’s business centered around three main sectors, including ten Bitcoin mining projects, five high-performance computing data centers, and four power-generation assets.
According to Asher Janoot, CEO of Hut 8, the focus on American Bitcoin helps streamline the company’s activities, and removes the burden of hardware costs from Hut 8’s balance sheet.
Janoot said: “The launch of American Bitcoin marks a pivotal shift in our platform trajectory, accelerating our transition to power and digital infrastructure. The business is purpose-built to accumulate Bitcoin at scale with exceptional speed, capital efficiency, and operational leverage.
“Our retained ownership in American Bitcoin preserves exposure to Bitcoin without the balance sheet burden of further parent-level investments in mining hardware,” he continued.
Hut 8’s upgrade of its ASIC fleet, enacted at the beginning of April, increased the firm’s overall hashrate to 9.3 EHps. The firm retains the option to purchase another 15 EHps at its Vega site in the Texas panhandle, and aims to control a total of 50 EHps by the end of 2025.
Hut 8’s future plans include taking American Bitcoin public, which Janoot says the firm is “sprinting forward on… aggressively.”
“We want American Bitcoin to be a Bitcoin household brand... that we can use to create other Bitcoin businesses,” Janoot added.
Nasdaq-listed Hut 8 currently has 19 data center sites either in operation or in development. The company acquired five colo data centers in Canada from TeraGo in 2022, and merged with US Bitcoin in 2023.
Hut 8 offers GPU-as-a-Service through its Highrise brand. Its first HPE-Cray cluster, comprising 1,000 Nvidia H100s, launched in September 2024 in a Chicago data center. The cluster is serving an unnamed AI cloud developer for five years under a revenue-sharing agreement.
American Bitcoin will initially colocate at Hut 8’s Alpha, Medicine Hat, and Salt Creek facilities, and likely take space in Hut 8’s upcoming Vega site.
