Hut 8 (NASDAQ:HUT) reported second-quarter 2026 revenue growth and improved adjusted EBITDA as its compute operations expanded, while management highlighted progress on its AI data center development projects and project-level financing strategy.
Revenue rose approximately 81% year over year to $74.9 million, while cost of revenue increased about 23%, producing gross profit of roughly $48 million. Gross margin expanded to approximately 64% from 47% a year earlier. Adjusted EBITDA, excluding digital asset mark-to-market movements, increased to $10.4 million from $4.2 million in the prior-year period.
Compute Operations Drive Quarterly Results
Hut 8 said its compute segment remained the primary operating contributor. Compute revenue increased to $72.5 million from $34.3 million, supported by Bitcoin production increasing to approximately 935 Bitcoin from about 308 in the year-earlier period. The company attributed the growth to additional operating capacity following the commencement of operations at Vega and the re-energization of its Drumheller facility.
Compute cost of revenue increased at a slower rate than segment revenue, resulting in an approximately 66% gross margin, according to Glennan.
Digital infrastructure revenue was $1.3 million, broadly unchanged from the prior-year period, while power revenue declined to $1.2 million from $5.5 million. Glennan said the power-revenue decline reflected the sale of the Far North portfolio in February, rather than a deterioration in the remaining business.
General and administrative expense rose to $76.1 million from $30.2 million. The CFO said approximately $43.6 million of the increase was share-based compensation and therefore largely non-cash. Salaries and benefits rose by approximately $4.1 million as the company added personnel, particularly within its energy origination group, to support development initiatives.
AI Data Center Development and Financing
Chief Executive Officer Asher Genoot described Hut 8 as an energy infrastructure platform that develops digital infrastructure around scarce power resources. He said the company’s approach is to originate power, secure site control and interconnection, commercialize projects with high-credit-quality counterparties, finance them, and construct and operate assets backed by long-duration contracts.
Management pointed to River Bend and Beacon Point as examples of the strategy. At River Bend, structural steel erection began in early June, while substation steel erection started in mid-July. Building foundations were expected to be completed before the end of the month, with slab-on-grade pours beginning across the auxiliary support yard and main building.
The company also discussed its second Beacon Point lease, covering 352 megawatts of IT capacity and representing approximately $9.8 billion in expected base-term contract value. With that agreement, Hut 8 said Beacon Point was fully commercialized, with one gigawatt of utility capacity supporting contracted investment-grade cash flows.
Beacon Point represents 704 MW of contracted IT capacity and about $19.6 billion of expected base-term contract value, according to Genoot. Together with River Bend, the company reported approximately 949 MW of contracted AI data center capacity and roughly $26.6 billion of expected aggregate base-term contract value.
Hut 8 completed $7.5 billion in investment-grade project financing for River Bend and Beacon Point Building One. The River Bend financing consisted of $3.25 billion of fully amortizing senior secured notes due 2042. Beacon Point Building One was financed with $4.25 billion of senior secured notes.
Genoot said the Beacon Point notes received a rating one notch above River Bend’s notes, priced 20 basis points inside the River Bend financing, and included a later start to amortization. He said both financings were structured at the project level, secured by project assets and non-recourse to Hut 8’s parent company.
Balance Sheet and Development Pipeline
At June 30, Hut 8 had approximately $233.6 million of unrestricted cash and approximately $6.8 billion of restricted cash and cash equivalents. Glennan said the restricted amounts primarily consisted of proceeds from the River Bend and Beacon Point financings and could be used for construction, debt-service reserves and other designated project purposes.
Total debt was approximately $7.6 billion, largely consisting of the River Bend and Beacon Point notes held at bankruptcy-remote project subsidiaries. During the quarter, interest income on undeployed project financing proceeds totaled $27.1 million, while the company capitalized $5.7 million of interest into construction in progress.
Hut 8 also said Coinbase converted approximately $159.3 million of accreted principal on its note into 9.7 million shares in May, eliminating the company’s remaining parent-level recourse debt. The company refinanced a $200 million Coinbase facility with a $200 million FalconX term loan, reducing the coupon to 7% from 9%. Glennan said the FalconX loan is collateralized by Bitcoin rather than the parent company.
The company’s development pipeline stood at approximately 8.7 gigawatts, up about 300 MW from the prior quarter. Hut 8 reported 11 sites in diligence or exclusivity stages, averaging more than 650 MW each. Genoot said the reported pipeline excludes merger-and-acquisition opportunities, behind-the-meter generation possibilities and a potential River Bend expansion.
Management said it continues to evaluate behind-the-meter power generation opportunities, which Genoot described as potentially the fastest path to capacity. However, Hut 8 does not include such opportunities in its reported pipeline until they become executed or contracted.
Looking ahead, management said it intends to finance projects against their own contracted cash flows where feasible, preserve parent-level flexibility, and use equity primarily for early-stage development work such as site control, interconnection and design.
About Hut 8 (NASDAQ:HUT)
Hut 8 Corp., trading on the Nasdaq under the symbol HUT, is a North American digital infrastructure company specializing in cryptocurrency mining and high‐performance computing. Founded in 2017 and headquartered in Toronto, Canada, Hut 8 operates purpose‐built data centers that house fleets of specialized ASIC and GPU servers. Through its flagship mining facilities in Alberta and Ontario, the company leverages low‐cost, low‐carbon power sources—such as hydroelectric and natural gas—to support sustainable bitcoin production.
