---
title: "Hut 8 booked $189.5 million of profit on $413.8 million of bitcoin gains as revenue fell"
description: "Keefe Bruyette cut Hut 8's target to $92 from $154 on Monday, warning of an AI-lease drought into early 2027. The Q3 release counters on funding and dilution, with a $1.07 billion undrawn credit line and a completed bitcoin-funded buyback, while revenue keeps shrinking and profit still rides bitcoin's price."
publisher: "The Inference"
section: "Data Center"
published: 2026-11-04T16:08:21.092Z
modified: 2026-11-04T16:08:21.092Z
canonical: https://theinference.org/article/hut-8-booked-189-5-million-of-profit-on-413-8-million-of-bitcoin-gains-as-revenue-fell
language: en
keywords: "Hut 8, AI Data Centers, Bitcoin Mining, Earnings"
---

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

> Keefe Bruyette cut Hut 8's target to $92 from $154 on Monday, warning of an AI-lease drought into early 2027. The Q3 release counters on funding and dilution, with a $1.07 billion undrawn credit line and a completed bitcoin-funded buyback, while revenue keeps shrinking and profit still rides bitcoin's price.

## Keefe Bruyette cut the target and warned of a lease drought

[Hut 8](https://theinference.org/markets/companies/hut-8-mining) (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](https://www.prnewswire.com/news-releases/hut-8-reports-third-quarter-2026-results-302928583.html) 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](https://www.finanznachrichten.de/nachrichten-2026-08/69209997-hut-8-corp-hut-8-reports-second-quarter-2026-results-008.htm): $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 [3][4]. 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](https://www.msn.com/en-us/money/other/hut-8-closes-two-tier-ai-data-center-finance-stack-jpmorgan-leads-12-bank-revolver/ar-AA2d81m4) led by JPMorgan with a twelve-bank syndicate, undrawn at quarter-end [5][6]. 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 [6][7]. [That signing came in July](https://money.usnews.com/investing/news/articles/2026-07-20/hut-8-signs-9-8-billion-ai-data-center-lease-fully-commercializes-texas-campus), 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].

*Chart: **704 MW is leased against a 3,180 MW pipeline** Bar chart of Hut 8 capacity in megawatts: 704 MW leased to tenants, 1,330 MW in construction, 3,180 MW under exclusivity and 230 MW at two West Texas sites under contract.*

*Hut 8 capacity by stage, megawatts. The 1,330 MW under construction includes the 704 MW already leased; the 3,180 MW under exclusivity is potential, not contracted; the 230 MW in West Texas is a pending Chapter 11 purchase. Sources: Hut 8 Q3 2026 earnings release; Reuters on the July Beacon Point lease. [6][7]*

## 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 [6][8]. 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 [4][6]. Stripped of them, adjusted EBITDA was $33.0 million, against $105.5 million of interest expense [6].

*Chart: **Revenue peaked at $88.5 million in late 2025 and has slid back to $71 million** Line chart of Hut 8 quarterly revenue from Q4 2024 to Q3 2026, rising from $32 million to a peak of $88.5 million in Q4 2025 and falling to $71.1 million in Q3 2026.*

*Hut 8 quarterly revenue, US$ millions, Q4 2024 to Q3 2026. Sources: Hut 8 SEC filings (via company_series); Q3 2026 earnings release. Values are as reported, rounded to the nearest $0.1 million. [9][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](https://theinference.org/markets/companies/fluidstack) that Google backstops, [delivers its first data hall in the second quarter of 2027](https://theinference.org/article/hut-8-shareholders-carry-river-bend-s-interest-and-tax-bill-until-the-first-hall-opens-in-2027); Beacon Point Phase 1 follows in the third quarter of 2027 and Phase 2 in mid-2028 [5][6]. 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](https://theinference.org/markets/people/asher-genoot) set the bar himself in August: "Delivery is now our central priority" [4].

## Takeaway

Hut 8's $189.5 million profit was a bitcoin mark, not rent: the data centers that justify the build deliver no revenue until the second quarter of 2027.

## Sources

1. [Yahoo Finance (TIKR), "Riot Platforms Sinks 5%, Cipher Down 8% as Keefe Bruyette Warns of 'Lease Catalyst Drought'", 2 November 2026](https://finance.yahoo.com/markets/stocks/articles/riot-platforms-sinks-5-cipher-182739114.html)
2. [Yahoo Finance / 24/7 Wall St, "Hut 8 Surges 16% Ahead of Earnings as Bitcoin Miners Rebound", 3 November 2026](https://finance.yahoo.com/markets/crypto/articles/hut-8-surges-16-ahead-170318675.html)
3. [Hut 8 Corp. press release, "Hut 8 Announces Pricing of $3.25 Billion of Investment-Grade Senior Secured Notes for River Bend Data Center Project", 27 April 2026](https://www.prnewswire.com/news-releases/hut-8-announces-pricing-of-3-25-billion-of-investment-grade-senior-secured-notes-for-river-bend-data-center-project-302755013.html)
4. [Hut 8 Corp. press release, "Hut 8 Reports Second Quarter 2026 Results", 4 August 2026](https://www.finanznachrichten.de/nachrichten-2026-08/69209997-hut-8-corp-hut-8-reports-second-quarter-2026-results-008.htm)
5. [Tech Times via MSN, "Hut 8 closes two-tier AI data center finance stack; JPMorgan leads 12-bank revolver", 28 September 2026](https://www.msn.com/en-us/money/other/hut-8-closes-two-tier-ai-data-center-finance-stack-jpmorgan-leads-12-bank-revolver/ar-AA2d81m4)
6. [Hut 8 Corp. press release, "Hut 8 Reports Third Quarter 2026 Results", 4 November 2026](https://www.prnewswire.com/news-releases/hut-8-reports-third-quarter-2026-results-302928583.html)
7. [Reuters via U.S. News & World Report, "Hut 8 Signs $9.8 Billion AI Data Center Lease, Fully Commercializes Texas Campus", 20 July 2026](https://money.usnews.com/investing/news/articles/2026-07-20/hut-8-signs-9-8-billion-ai-data-center-lease-fully-commercializes-texas-campus)
8. [Crypto Briefing, "Hut 8 posts $189.5M Q3 profit as revenue falls short of estimates", 4 November 2026](https://cryptobriefing.com/hut-8-q3-2026-earnings-beacon-point/)
9. [Hut 8 Corp., quarterly figures from its SEC filings (via company_series), retrieved 4 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001964789)


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Hut 8 booked $189.5 million of profit on $413.8 million of bitcoin gains as revenue fell — The Inference. Canonical: https://theinference.org/article/hut-8-booked-189-5-million-of-profit-on-413-8-million-of-bitcoin-gains-as-revenue-fell