HUT · Hut 8 Corp.

Period Performance

Period Performance

For the three months ended March 31, 2026, total revenue reached $71.0 million, a 226% increase from $21.8 million in the prior-year period. The surge was almost entirely attributable to the Compute segment, where revenue jumped to $66.0 million from $16.1 million. This was driven by a sixfold increase in Bitcoin mined—from approximately 135 to 817—following the completion of a fleet upgrade at Salt Creek and Medicine Hat in April 2025 and the energization of the Vega site in August 2025. The average revenue per Bitcoin mined declined from approximately $91,512 to $76,077, reflecting lower Bitcoin prices.

Gross profit improved dramatically to $45.5 million (64.0% margin) from $3.2 million (14.5% margin) in the prior year, as cost of revenue grew at a slower pace (+37%) than revenue. However, operating expenses ballooned to $415.8 million from $150.8 million, driven by a $47.1 million increase in stock-based compensation, a $23.5 million rise in depreciation and amortization (primarily from American Bitcoin's miner fleet and Vega site infrastructure), and a $183.3 million increase in losses on digital assets. The loss on digital assets reflected a larger decline in Bitcoin price during Q1 2026 (from $87,498 to $68,222) compared to Q1 2025 (from $93,354 to $82,534). As a result, operating loss widened to -$370.4 million from -$147.7 million.

Other income swung to $68.3 million from an expense of $6.9 million, largely due to a $33.6 million gain on the sale of the Far North JV, a $22.8 million reduction in asset contribution costs, and a $20.0 million increase in gains on derivatives. Net loss attributable to Hut 8 Corp. was -$219.8 million versus -$133.9 million in the prior year.

Segment Dynamics

• Power: Revenue declined 15% to $3.7 million, driven by the divestiture of the Far North JV in February 2026. Cost of revenue fell 42% to $2.1 million, reflecting lower electricity sales.
• Digital Infrastructure: Revenue was essentially flat at $1.3 million, with cost of revenue also stable at $1.5 million.
• Compute: Revenue surged 310% to $66.0 million, with cost of revenue increasing 63% to $21.9 million. The segment's gross margin expanded significantly, reflecting operational leverage from higher miner uptime and the addition of the Vega site. The segment now dominates the revenue mix, accounting for 93% of total revenue versus 74% in the prior year.

Forward View

Management's outlook is centered on scaling its energy infrastructure platform to support AI, HPC, and ASIC compute. Key strategic initiatives include:

• Beacon Point Lease: A long-term triple-net lease with a high-investment-grade technology company, with a base contract value of ~$9.8 billion over 15 years and expected average annual NOI of ~$655 million. Initial delivery is expected in Q3 2027.
• River Bend Financing: A $3.25 billion project bond (6.192% senior secured notes due 2042) to fund a 245 MW data center, representing the first investment-grade project bond for a construction-stage data center.
• FalconX Loan: A $200 million Bitcoin-collateralized term loan at 7.00% to refinance higher-cost debt (Coinbase loan at 9.00%).
• Drumheller Reenergization: Deployment of ~11,298 Bitcoin miners (3.05 EH/s) completed in April 2026, increasing American Bitcoin's fleet to ~28.1 EH/s.

Management expects to fund capital expenditures for River Bend and Beacon Point through a combination of cash, Bitcoin holdings, and project-level financing. No specific quantitative guidance was provided for future periods.