Investors appeared to disregard Hut 8’s reported first quarter 2026 net loss of more than $253 million on Wednesday, lifting the shares of the Bitcoin mining company by more than 33%.
Hut 8 attributed the loss to a reduction in the market value of its Bitcoin (BTC) holdings, which fell from a high of over $126,000 apiece in October to a low of $60,000 in February.
Revenue for the quarter totaled more than $71 million, down by about 22% from the previous period’s $88.4 million, according to Hut 8’s earnings report. Analysts had forecast $78.5 million, according to FactSet.
The company also announced a $9.8 billion deal that will see Hut 8 lease 352 megawatts of power capacity to a third-party AI company over a 15-year period. Wednesday’s results showed the company generated $66 million in first-quarter revenue from ASIC compute, AI cloud and traditional cloud solutions.
Hut 8’s stock surged following news of a $9.8 billion deal. Source: Yahoo Finance
The company’s diversification into AI and energy infrastructure comes amid an industry-wide pivot away from crypto mining, as public crypto mining companies struggle with high costs and declining revenues.
Related: Bitcoin miner Core Scientific shifts to AI with 1.5GW data center push
AI and Bitcoin mining increasingly compete for power
The shift to AI threatens the Bitcoin mining industry, according to crypto trader and market analyst Ran Neuner.
“Both industries compete for the same thing: electricity,” Neuner said, adding, “right now, AI is willing to pay much more for it.”
Mining companies can make anywhere between $57 and $129 per MW securing the blockchain, compared to between $200 and $500 per MW for AI infrastructure, he said.
Revenue comparison for Bitcoin mining and AI hosting. Source: Ran Neuner
As miners shift their focus to more profitable AI ventures, the total amount of computing power dedicated to securing the Bitcoin blockchain declines, making the network easier to attack, Neuner said.
The need for massive amounts of energy to power high-performance computing applications, including Bitcoin mining and AI workloads, has driven demand for nuclear energy generation.
Since 2024, several AI hyperscaling companies like Google, Microsoft, Amazon and Meta have announced nuclear energy deals to power their AI infrastructure.
Magazine: How AI just dramatically sped up the quantum risk for Bitcoin
