Hut 8 Logs $15.2M Q1 Loss, Redirects 12% Hashrate to AI Services
Hut 8 Mining posted a Q1 net loss of $15.2 million on $18.7 million in revenue as Bitcoin mining margins fell 34% year-over-year. The company will convert 12% of its 4.1 exahash-per-second capacity to AI compute workloads and add 5 MW of data center power for AI services.
1. Q1 Financial Results
Hut 8 reported a net loss of $15.2 million in the first quarter on revenue of $18.7 million, compared with a $5.4 million loss a year earlier. The 34% drop in mining revenue per terahash reflected lower Bitcoin prices and higher electricity costs, squeezing margins across its 4.1 EH/s fleet.
2. Strategic AI Pivot
To diversify revenue, Hut 8 will repurpose roughly 12% of its ASIC mining capacity for AI inference tasks. The company plans to deploy 5 MW of additional data center power and is negotiating partnerships with AI service firms to house and operate the retrofitted equipment.
3. Expected Operational Impact
Management forecasts that AI compute contracts could generate up to $8 million in annual recurring revenue once the 5 MW expansion is fully online. This shift aims to stabilize cash flow and improve equipment utilization during Bitcoin market downturns.