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Call sheet · Q2'24

Hut 8 (HUT)

Q2'24 earnings call · held August 13, 2024 · compared with the Q1'24 call · management-credibility review
5/12
Disclosure score
2 high, 4 medium, 1 low flags
Financial quality
Bottom line
The sleeper story: Hut 8 is morphing from Bitcoin miner to energy infrastructure platform, securing 205MW in Texas that could go either direction, but execution is failing on both paths. The obvious Bitcoin narrative of margin expansion despite halving is a temporary win from site optimization that can't overcome their ancient 31.7 J/TH fleet when competitors deploy 12 J/TH machines. The binding constraint is credibility: GPU revenue slipped from '$20M in H2' to 'coming weeks' while managed services just got restructured down. 'We are not merely a Bitcoin mining or AI business; we are a power business' sounds visionary until you realize they can't execute on either vertical. My view changes if they actually generate $5M from GPUs in Q3 or announce a real fleet upgrade with committed CapEx.

The 30-second version

  • Power-first pivot is real: 205MW Texas Panhandle site signals transformation from miner to energy infrastructure play
  • Bitcoin mining margins expanded 12 points to 46% DESPITE halving, but it's a mirage built on fleet relocation and temporary curtailment gains
  • GPU-as-a-Service revenue vanished from 'forecasted $20M annual run rate' to 'coming weeks' while managed services got restructured down from variable to fixed $15M

What changed this quarter

MetricQ1'24Q2'24Change
Total Revenue$51.7M (231% YoY)$35.2M (72% YoY)Massive -32% QoQ deceleration
Digital Assets Mining Revenue$30.4M (300% YoY)$13.9M (-13% YoY)Collapsed -54% QoQ post-halving
Net Income (Loss)$250.9M profit($71.9M) lossSwung $323M negative on Bitcoin revaluation
Adjusted EBITDA$297M profit($57.5M) lossCratered $354M QoQ
Bitcoin Mining Gross MarginNot disclosed precisely46% (vs 34% prior year)+12 points YoY expansion despite halving
Cost to Mine Bitcoin$24,594 average$26,232Only +7% QoQ despite 100% halving impact
Power Cost ($/kWh)$0.053 blended$0.032 self-mining only-40% reduction through optimization
Fleet EfficiencyNot disclosed31.7 J/TH averageFirst disclosure, massively behind 12 J/TH frontier
Cash Balance$11.5M$175.5M+$164M from Coatue convertible
Bitcoin Holdings9,102 BTC ($648.9M)9,100 BTC ($570.5M)Stable count, -12% value on price decline

Accountability tracked

5 new promises made5 narrative shifts flagged7 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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