Latest news with #Hut8Corp.
Yahoo
08-05-2025
- Business
- Yahoo
Bitcoin Miner Partnering With Trump's Sons Posts Revenue Decline
(Bloomberg) -- Bitcoin mining company Hut 8 Corp., which recently partnered with President Donald Trump's sons on a new venture, said its first-quarter earnings swung to a loss and revenue tumbled by more than 50%. Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch Iceland Plans for a More Volcanic Future As Trump Reshapes Housing Policy, Renters Face Rollback of Rights The Miami-based company posted $21.8 million in revenue for the first quarter, a nearly 58% drop year-over-year. It also recorded a quarterly loss of $134.3 million compared to net income of $250.7 million in the first quarter of last year. The declines have been largely driven by a Bitcoin software update called halving that slashed mining revenue as well as operational downtime that was undertaken to upgrade its mining machines, Hut 8's Chief Executive Officer Asher Genoot said Thursday on its earnings call. While the halving took place last April, and happens every four years, it often has a long-lasting impact on miners. Hut 8, in late March, announced that it's launching a mining venture called American Bitcoin Corp. after acquiring a majority interest in American Data Centers Inc., a company formed by investors including Eric Trump and Donald Trump Jr. This new venture will go public, Genoot reiterated during Thursday's earnings call. Hut 8's shares rose as much as 17% on Thursday as the company reinforced its plan to invest in American Bitcoin and continue strategic accumulation of the cryptocurrency. Bitcoin pushed past $100,000 for the first time since February as of 12:08 p.m. in New York. While carving out its mining operations into this separate entity, Hut 8 will continue to build out its high-performance computing data centers for artificial intelligence firms with land and power assets under development in Louisiana, Genoot said. Doing so has enabled the company to tap into a more diverse source of funding, he added. The venture with Hut 8 further expands the US president's ties to the cryptocurrency sector along with the decentralized finance platform World Liberty Financial, a stablecoin backed by the US dollars and memecoins featuring the president and the first lady Melania Trump. US Border Towns Are Being Ravaged by Canada's Furious Boycott Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China Maybe AI Slop Is Killing the Internet, After All Inside the Dizzying Chaos of Running a Freight Business Under Trump ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
01-04-2025
- Business
- Bloomberg
Trump-Backed American Bitcoin Mining Venture Wants to Go Public
American Bitcoin Corp., the crypto mining venture announced this week between Hut 8 Corp. and an investor group that includes two sons of US President Donald Trump, plans to eventually go public as well as to seek additional private capital. 'So you can see this in the long term as two sister publicly traded companies,' Asher Genoot, chief executive officer of Miami-based Bitcoin miner Hut 8, said during a Bloomberg TV interview on Tuesday. 'One that is energy, infrastructure data centers and the other one that's Bitcoin, AISCs and reserves and together they form a vertically integrated company that has some of the best economics out there.'
Bloomberg
01-04-2025
- Business
- Bloomberg
Trump Family Launches Bitcoin Mining Venture With Hut 8
The Trump family is launching a Bitcoin mining-focused venture with Hut 8 Corp., called American Bitcoin Corp., which will focus on Bitcoin mining and "strategic Bitcoin reserve development." Eric Trump will serve as the chief strategy officer for American Bitcoin. Asher Genoot is the Hut 8 CEO. Eric Trump says there are no conflicts of interest with the White House or his father, President Donald Trump. They speak on "Bloomberg Crypto." (Source: Bloomberg)
Bloomberg
31-03-2025
- Business
- Bloomberg
Trump Family to Launch US Bitcoin Mining Venture With Hut 8
The Trump family is set to launch a Bitcoin mining-focused venture with Hut 8 Corp., the latest expansion of the president's ties to the cryptocurrency sector. Hut 8 is launching American Bitcoin Corp. as a majority-owned subsidiary, focused exclusively on Bitcoin mining and 'strategic Bitcoin reserve development,' the Miami-based company said in a statement Monday.
Yahoo
10-03-2025
- Business
- Yahoo
Shareholders Shouldn't Be Too Comfortable With Hut 8's (NASDAQ:HUT) Strong Earnings
Strong earnings weren't enough to please Hut 8 Corp.'s (NASDAQ:HUT) shareholders over the last week. Our analysis found several concerning factors in the earnings report beyond the strong statutory profit number. Check out our latest analysis for Hut 8 In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to December 2024, Hut 8 recorded an accrual ratio of 0.58. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. In the last twelve months it actually had negative free cash flow, with an outflow of US$193m despite its profit of US$338.9m, mentioned above. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of US$193m, this year, indicates high risk. Notably, the company has issued new shares, thus diluting existing shareholders and reducing their share of future earnings. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. Hut 8 expanded the number of shares on issue by 17% over the last year. As a result, its net income is now split between a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of Hut 8's EPS by clicking here. Three years ago, Hut 8 lost money. On the bright side, in the last twelve months it grew profit by 1,457%. But EPS was less impressive, up only 702% in that time. Therefore, the dilution is having a noteworthy influence on shareholder returns. In the long term, earnings per share growth should beget share price growth. So Hut 8 shareholders will want to see that EPS figure continue to increase. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. As it turns out, Hut 8 couldn't match its profit with cashflow and its dilution means that earnings per share growth is lagging net income growth. Considering all this we'd argue Hut 8's profits probably give an overly generous impression of its sustainable level of profitability. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 4 warning signs for Hut 8 you should be mindful of and 2 of these are potentially serious. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
