Hut 8 Analysts Still Bullish Despite Q1 Miss; Bets On American Bitcoin, HPC/AI Potential

Analysts maintained their rating/price forecast on Hut 8 Corp. HUT following the first quarter results reported on Thursday.

The company reported EPS of $(1.30), which was below the estimated $(0.24) and sales of $21.82 million fell short of the estimated $33.28 million.

H.C. Wainwright & Co. analyst Mike Colonnese maintained a Buy rating with a price forecast of $25.

The analyst writes that despite weak results, Hut 8’s stock jumped 12% on positive High-Performance Computing (HPC)/AI colocation pipeline updates.

Colonnese says that Hut 8’s shift to an energy infrastructure platform (2.6 GW HPC/AI pipeline) warrants a re-rating upon securing stable HPC contracts.

The analyst is also bullish on the company’s legacy mining (American Bitcoin) and expects strong second-quarter growth post-fleetformational fleet upgrade at the end of the first quarter.

The analyst adjusted the 2025 revenue forecast downward to $245.6 million from $247 million prior, primarily due to their reduced outlook for the Compute segment to $161.9 million (vs. previously $175.3 million).

The revenue includes $135.6 million in Bitcoin mining revenue, $13.7 million from traditional data center services, and $16 million in GPU-as-a-Service revenue.

Needham analyst John Todaro retained a Buy rating with a price forecast of $21.

The analyst writes that quarterly revenue and adjusted EBITDA fell short of expectations on investments made during the quarter, including rig downtime.

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Todaro says that he is increasingly optimistic about American Bitcoin, and this earnings call provided further clarity on the subsidiary.

American Bitcoin’s goal is to become “the world’s largest, most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve,” aiming for over 50 EH/s in hash rate (a 500%+ increase from current levels) with an average fleet efficiency of 15 J/TH (a 25%+ improvement), adds the analyst.

The analyst writes that progress in the company’s HPC initiatives remains limited.

Todaro expects the primary customer in discussions for the River Bend, Louisiana, site to consider a 130 MW deployment with Hut 8 at an alternative location.

Consequently, the analyst is pushing back the projected HPC revenues from 2026 to 2027.

As a result, the analyst lowered 2025-26 adj. EBITDA to $72 million and $144 million, respectively (from $113 million and $315 million previously).

HUT Price Action: Hut 8 shares are down 3.95% at $13.61 at publication on Friday.

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