0001104659-25-105874
SEC filingRevenue surged 91% YoY to $83.5M, driven by Compute segment growth and Bitcoin price gains, with net income of $50.6M.
For the three months ended September 30, 2025, total revenue surged 91% year-over-year to $83.5 million, up from $43.7 million in the prior-year period. The growth was overwhelmingly driven by the Compute segment, which posted $70.0 million in revenue versus $13.7 million, a 411% increase. This was fueled by a fleet upgrade at Medicine Hat and Salt Creek sites, the addition of 14.86 EH/s of mining capacity through American Bitcoin's purchase of Bitmain miners, and a sharp rise in the average Bitcoin price to $114,121 per coin (from $61,100). GPU-as-a-Service contributed an incremental $2.6 million.
Gross profit rose to $51.2 million (61.3% margin) from $26.2 million (59.9% margin) in the prior year, reflecting improved operating leverage. Operating income swung to $72.7 million from a loss of $1.6 million, largely due to a $76.6 million gain on digital assets (driven by Bitcoin price appreciation from $107,173 to $114,068 during the quarter). Net income attributable to Hut 8 Corp. was $50.1 million, compared to $0.6 million in Q3 2024. Adjusted EBITDA improved to $109.0 million from $5.6 million, underscoring strong operational performance.
Management highlighted several strategic initiatives and liquidity sources. The Two Prime Credit Agreement provides up to $200 million in revolving credit (7.99% fixed rate, 364-day maturity), though no amounts were drawn as of September 30, 2025. The 2025 ATM program ($1.0 billion) raised $22.9 million through September 30, 2025, while American Bitcoin's $2.1 billion ATM raised $90.0 million. The company's Bitcoin Strategic Reserve stood at 13,696 coins, providing financial flexibility. Energy Capacity Under Development expanded to 1,530 MW (from 205 MW), signaling a robust pipeline for future infrastructure projects. Management expects to rely on operating cash flows, Bitcoin reserves, and capital markets for long-term funding, with no specific quantitative guidance provided for future periods.
As of September 30, 2025, the company held $39.6 million in cash and restricted cash, down from $85.6 million at year-end 2024. Digital assets surged to $1.56 billion (10,343 Bitcoin) driven by mining revenue and purchases, including $287.8 million in Bitcoin bought during Q3. Total assets reached $2.69 billion with property and equipment of $646.7 million. Total debt carrying value was $347.5 million, including $130 million drawn under the Coinbase credit facility and $159.3 million convertible note (Coatue). The debt-to-equity ratio (total debt/total equity) stood at 21.0%. Shareholders' equity attributable to Hut 8 Corp. grew to $1.44 billion, supported by ATM proceeds and retained earnings.
The most significant commitment is the miner purchase liability of $387.1 million, representing Bitcoin pledged to Bitmain under two purchase agreements. The ABTC Bitmain Purchase Agreement alone has a total purchase price of up to $320 million. The company also has operating lease commitments of $31.8 million undiscounted and finance lease commitments of $27.6 million. Additionally, the Two Prime Credit Facility provides up to $200 million in revolving credit, undrawn as of quarter end.
During Q3 2025, the company retired the 2024 ATM program and established a new $1.0 billion ATM facility (2025 ATM). No share repurchases were executed under the existing $250 million buyback program. Debt increased net by $46.9 million, primarily from $65 million drawn on the Coinbase credit facility. Capital expenditures from the cash flow statement (not in notes) were $147.9 million, but the notes highlight a $18.1 million land purchase in Louisiana in February 2025. No dividends were paid.
The company reports three segments: Power, Digital Infrastructure, and Compute. For the three months ended September 30, 2025, segment revenues (before eliminations) were: Power $18.0 million, Digital Infrastructure $31.9 million, and Compute $70.0 million. Inter-segment eliminations totaled $36.4 million, leading to consolidated revenue of $83.5 million. Geographically, 87.8% of revenue came from the United States and 12.2% from Canada. Long-lived assets were concentrated in the US ($598.1 million) versus Canada ($48.7 million). Segment-level operating income is not disclosed in the notes.
Net income of $53.8M contrasts sharply with operating cash flow of -$81.9M, indicating significant non-cash adjustments and working capital outflows. Key non-cash items include $108.6M in compute revenue related to Bitcoin mining, $181.8M in gains on digital assets, and $62.2M in depreciation. Working capital consumed cash, notably a $17.6M increase in deposits and prepaid expenses and a $4.2M decrease in deferred revenue.
Capex intensity is high: purchases of property and equipment totaled $147.9M, up from $77.8M in the prior period. Additionally, the company spent $287.8M on Bitcoin purchases and $25.0M on other digital assets, driving investing cash flow to -$451.8M. Free cash flow (operating cash flow minus capex) was -$229.8M, heavily negative.
Financing activities provided $487.6M, primarily from stock offerings ($154.8M from ATM, $205.3M from American Bitcoin Corp. Class A stock, and $88.0M from another ATM) and $65.0M in loan proceeds. This external funding covered the cash shortfall. No dividends or share repurchases were reported. The company ended the period with $39.6M in cash and restricted cash, down from $85.6M at the start.