TenQ

The Hut 8 story

Hut 8 is an energy and computing infrastructure company expanding into AI data centers, with delivery at River Bend and Beacon Point determining whether signed leases become operating income.

Hut 8 stock reportTenQ Score 6/36 · every chart and check from its filings
  • $67.75share price, last close
  • $8.4Bmarket value
  • 6/36TenQ Score checks passed

The story in brief

  • Contracts precede operations. After the July 2026 Beacon Point lease, Hut 8 had 949 MW of contracted AI capacity and approximately $26.6 billion of expected aggregate base-term contract value.
  • Project funding secured. In the quarter to June 2026, Hut 8 closed $7.5 billion of fully amortizing investment-grade project financing without equity dilution or recourse to Hut 8 Corp.
  • Bitcoin affects reported earnings. The quarter to June 2026 produced a $177.1 million net loss, including $138.6 million of primarily unrealized losses on digital assets.

What drives the business

  • Hut 8 secures power and develops infrastructure around it, using Bitcoin mining as an initial use for some sites while expanding into long-term AI data center leases.
  • Its Compute businesses include majority-owned American Bitcoin, Hut 8 Canada and Highrise AI, and generated $72.5 million of the $74.9 million revenue in the quarter to June 2026.
  • At River Bend, Fluidstack signed a 15-year lease for 245 MW of IT capacity with $7.0 billion of base-term contract value, supported by Google's financial backstop covering lease payments and related pass-through obligations.
  • At Beacon Point, the same unnamed high-investment-grade tenant signed a second 352 MW lease in July 2026, bringing campus base-term contract value to approximately $19.6 billion under triple-net, take-or-pay arrangements.
  • Across the contracted AI portfolio, management expects more than $1.75 billion of average annual net operating income, but initial data hall deliveries are scheduled for 2027.

What the price assumes

TenQ does not measure the price's implied growth through a reverse DCF because Hut 8's finance industry classification means free cash flow may not measure what it earns.

The $11.4 billion market value represents 35.8x sales, compared with TenQ's sales valuation threshold of under 2.5x.

Revenue grew 129.5% to $318 million over the last twelve months, but the operating margin was -295.3%, leaving the delivered business far from profitability despite its growth.

What could change the story

  • Construction delays, power delivery problems, equipment constraints or cost overruns could postpone income from River Bend and Beacon Point, where 1,330 MW of utility capacity was under construction following the July 2026 lease.
  • Expected lease net operating income is not consolidated profit, since it excludes corporate expenses and depreciation and amortization.
  • TenQ's interest coverage and cash conversion checks fail, with operating cash flow equal to -28.1% of revenue over the last twelve months.
  • The approximately $8.1 billion liquidity figure at June 30, 2026 includes restricted cash and Bitcoin holdings, so it is not entirely unrestricted cash available for corporate spending.
  • Stock-based pay of $148 million over the last twelve months adds a dilution consideration even though the project financings did not issue equity.

What to watch next

  • Management's delivery schedule calls for Beacon Point Phase 1 energization in the first quarter of 2027, initial River Bend data halls in the second quarter of 2027 and initial Beacon Point data halls in the third quarter of 2027.
  • Beacon Point Phase 2 financing remains under evaluation, while the $1.07 billion senior secured revolving credit facility closed in September 2026 adds parent-level funding capacity whose use will help show how development is being funded.
  • Subsequent results can show whether operating cash flow and margins improve alongside revenue, with adjusted EBITDA comparisons requiring care because the definition adopted in the quarter to June 2026 excludes digital asset valuation gains and losses.

Sources

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