Hut 8 booked $189.5 million of profit on $413.8 million of bitcoin gains as revenue fell

Keefe Bruyette cut the target and warned of a lease drought

Hut 8▼−21.41% — Hut 8, down 21.41 percent today (Nasdaq: HUT), a bitcoin miner that now builds and leases out AI data centers, fell 14% on Monday November 2 after Keefe Bruyette analyst Stephen Glagola cut his price target to $92 from $154 ¹. The firm kept its Outperform rating but warned of a "lease catalyst drought" through early 2027: miners, it argued, already trade near the value of their signed leases ¹. The stock closed at $55.01, then rebounded 16% to $63.62 on Tuesday ahead of the earnings report ². Wednesday's third-quarter release↗ lands as the company's reply.

The credit line is closed and the buyback is funded

Funding was answered before this week. In the second quarter Hut 8 closed $7.5 billion of investment-grade project bonds↗: $3.25 billion behind the River Bend campus in Louisiana at 6.192%, due 2042, and $4.25 billion behind Beacon Point Phase 1 in Texas at 6.129%, priced 20 basis points tighter ³⁴. Both are non-recourse to the parent, meaning bondholders can claim only the project's cash flows, not the parent company's ³.

September added a $1.07 billion, four-year senior secured revolving credit facility↗ led by JPMorgan with a twelve-bank syndicate, undrawn at quarter-end ⁵⁶. Dilution was answered with bitcoin: Hut 8 repurchased $74.7 million of stock in the quarter and $175.3 million after it, funding the full $250 million program by selling roughly 3,100 coins, and the board raised the authorization to $1.0 billion on November 2 ⁶.

The lease headline predates the downgrade; the pipeline is new

The quarter's lease headline is a second 352 MW lease at Beacon Point, the Texas campus: about $9.8 billion of expected contract value over its 15-year base term and roughly $655 million a year of expected net operating income, on take-or-pay terms, so rent is owed whether or not the tenant draws the power ⁶⁷. That signing came in July↗, before the downgrade ⁷.

It doubled the unnamed tenant's commitment to 704 MW, all of it high investment grade, and lifted the portfolio's expected base-term contract value to about $26.6 billion ⁷. What is new since July is origination: capacity under exclusivity rose 1,300 MW to 3,180 MW, and Hut 8 agreed to buy two energized West Texas sites, up to 230 MW, for up to $180 million from affiliates of the bankrupt crypto firm Poolin through a Chapter 11 sale, closing as early as this quarter ⁶.

Revenue is falling and profit rides bitcoin's price

Quarterly revenue has slipped from an average of $86 million in late 2025 to about $72 million this year: $71.1 million in the third quarter, down from $83.5 million a year earlier and below the $76 million to $77 million analysts expected ⁶⁸. Net income of $189.5 million rests on $413.8 million of mostly unrealized digital-asset gains; a quarter earlier the same marks drove a $177.1 million loss ⁴⁶. Stripped of them, adjusted EBITDA was $33.0 million, against $105.5 million of interest expense ⁶.

Everything rides on the 2027 delivery dates

No rent is owed until the data halls are built. First rent is due when River Bend, anchored by a lease from the AI-cloud firm Fluidstack that Google backstops, delivers its first data hall in the second quarter of 2027; Beacon Point Phase 1 follows in the third quarter of 2027 and Phase 2 in mid-2028 ⁵⁶. About $6.6 billion of cash and short-term investments must carry 1,330 MW of construction to those dates ⁶. Chief Executive Asher Genoot set the bar himself in August: "Delivery is now our central priority" ⁴.