In the first quarter of 2025, Bitcoin mining company Hut 8 reported a substantial 79% increase in its operational hashrate, marking a significant expansion of its capacity.
However, this growth comes amid challenging financial results, with the firm posting a net loss of $134.3 million against revenue of $21.8 million, according to its latest earnings report released on May 8.
CEO Asher Genoot characterized the quarter as a “deliberate and necessary phase of investment,” indicating that the current financial setbacks are the result of substantial upfront expenditures designed to pave the way for future growth.
“We believe the returns on this work will become increasingly visible in the quarters ahead,” Genoot noted.
Hut 8 Manages 1,020 MW in Power, Eyes 2,600 MW Expansion
As of March 31, Hut 8 had control over 1,020 megawatts of energy capacity, with plans to expand by an additional 2,600 megawatts.
Significant investments included a comprehensive upgrade of the company’s ASIC fleet and the establishment of a new majority-owned subsidiary, American Bitcoin, which has backing from members of Donald Trump’s family.
This subsidiary aims to become a leading player in the global Bitcoin mining space, focusing on operational efficiency while keeping a strategic reserve of Bitcoin.
Hut 8’s management indicated that American Bitcoin could pursue further capital through an IPO, serving as a cost-effective platform for ventures into high-performance computing.
“The streamlined capital allocation framework made possible by the American Bitcoin launch reinforces our ability to scale lower-cost-of-capital businesses,” added Genoot.
Today we announced our results for Q1 2025, a period of deliberate investment designed to unlock the potential of our development flywheel.
Highlights
– Deployed our upgraded ASIC fleet to end the quarter with 9.3 EH/s at approximately 20 J/TH
– Launched @AmericanBTC to… pic.twitter.com/JoEbWIuMhd
— Hut 8 (@Hut8Corp) May 8, 2025
Looking to the future, Hut 8 is focused on various infrastructure projects, including powering up the Vega data center, initiating development on the River Bend facility, and progressing in utility-scale power generation.
Genoot is optimistic that these initiatives will enable Hut 8 to generate immediate cash flow while establishing a foundation for long-term leadership in digital infrastructure.
As of now, Hut 8 shares were trading at $12.66 on Nasdaq, reflecting a modest increase of 2.2% on the day, although the stock has dropped more than 38% year-to-date.
This financial update follows a recent earnings announcement from rival Core Scientific, which reported a quarterly profit of $580 million, despite falling short of revenue expectations due to decreasing mining margins.
Bitcoin Mining’s Sustainable Energy Usage Rises to 52%
A recent study from Cambridge University revealed that sustainable energy sources now account for 52.4% of Bitcoin mining operations, a significant rise from 37.6% in 2022.
The research indicates that 42.6% of the sustainable energy utilized in Bitcoin mining comes from renewable sources such as wind and hydropower, with 9.8% derived from nuclear power.
Natural gas has surpassed coal as the primary energy source for Bitcoin mining, increasing to 38.2%, up from 25% in 2022.
Meanwhile, coal’s contribution has plummeted to 8.9%, down from 36.6% the previous year.
Following China’s crackdown on the crypto industry in 2021, the United States has emerged as a global leader in Bitcoin mining, fueled by affordable electricity and robust capital markets.
The election of pro-crypto President Donald Trump initially heightened expectations for ongoing industry growth.
The post Crypto Miner Hut 8 Boosts Hashrate 79% in Q1 Despite $134M Net Loss appeared first on Finance Newso.
