Hut 8 misses on revenue, but Wall Street shrugs

Misses happen. Megawatts are the plot twist.

Hut 8’s Q1 print came in softer than Wall Street wanted, with revenue of $71 million landing below Needham’s $77.4 million estimate. Blame the usual crypto-chaos cocktail: lower bitcoin prices, which are still doing their best impression of a trampoline with one broken spring.

The part Wall Street actually cares about

Needham’s John Todaro didn’t flinch. He reaffirmed a Buy rating and hiked his price target from $88 to $128, basically telling investors to look past the ugly quarter and focus on what Hut 8 is building underneath it.

The key reason: the company just signed a 15-year, 352 MW lease at its Beacon Point campus, and the analyst thinks the economics are in line with the earlier deal Hut 8 announced in December. That’s not tiny side-project stuff — that’s the kind of long-dated infrastructure bet that can start looking very smart once the power gets turned into recurring revenue.

Why you should care

Here’s the investor chessboard:

• Hut 8’s adjusted EBITDA, excluding bitcoin, came in at $45.1 million, well ahead of expectations.
• The Beacon Point site now has a base-term value of $9.8 billion, according to the analyst.
• The Corpus Christi campus could eventually scale to 1 gigawatt of gross capacity, which is a fancy way of saying there’s a lot more room for new tenants.

Todaro even floated the idea that the new customer could be one of the hyperscaler heavyweights — think Amazon, Meta, or Oracle — which is the kind of rumor that makes data-center stocks trade like they’ve got a VIP wristband.

Big picture

The quarter itself was messy, but the bigger story is that Hut 8 is increasingly looking less like a pure bitcoin story and more like a power-and-compute landlord with AI-adjacent upside. If those leases keep filling up, the market may care a lot less about one revenue miss and a lot more about the megawatts.