Hut 8 Corp. (HUT): A Bull Case Theory 

We came across a bullish thesis on Hut 8 Corp. on The Analyst’s Journal’s Substack by A_Capital. In this article, we will summarize the bulls’ thesis on HUT. Hut 8 Corp.’s share was trading at $40.16 as of December 17th. HUT’s trailing and forward P/E were 20.70 and 128.21 respectively according to Yahoo Finance.

Hut 8 Corp. operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. HUT represents a high-upside but execution-intensive investment positioned at the convergence of Bitcoin adoption, AI/HPC infrastructure demand, and North American energy development. The company has evolved from a pure-play Bitcoin miner into a vertically integrated energy infrastructure platform, generating revenue across Bitcoin mining, managed services, power infrastructure, and emerging HPC use cases.

Its scale is meaningful, with a current 1,020 MW energy platform and an expansive 8,650 MW development pipeline, of which 1.5 GW has moved into active development. Hut 8 also holds a sizable strategic Bitcoin reserve of 13,696 BTC, valued at roughly $1.6 billion, providing embedded leverage to Bitcoin price appreciation.

Operationally, the company has rapidly scaled its mining footprint, expanding hashrate to 26.8 EH/s while materially improving fleet efficiency, and it benefits from diversified revenue streams through its Power, Digital Infrastructure, and Compute segments. The creation of the American Bitcoin subsidiary adds further optionality by separating mining assets, generating managed services and colocation revenue, and preserving the possibility of a future IPO or strategic transaction. Hut 8’s energy-first strategy and ownership of critical power infrastructure position it to capitalize on surging AI and data center demand, where hosting economics are materially superior to Bitcoin mining.

However, the investment case is tempered by substantial risks. Reported profitability remains heavily dependent on unrealized Bitcoin gains, with core operations still marginal or loss-making. The massive development pipeline requires significant capital, carries long timelines, and faces competition from larger, better-capitalized peers and hyperscalers. At its current valuation, the market already prices in meaningful execution success, limiting margin of safety. As a result, Hut 8 offers attractive long-term optionality but warrants a cautious stance until infrastructure revenues scale and operational profitability improves.

Previously we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst in May 2025, which highlighted the company’s positioning as an under-the-radar AI infrastructure play leveraging renewable-powered data centers, zero debt, and early AI partnerships. The company’s stock price has appreciated approximately by 270.39% since our coverage. This is because the thesis played out. The thesis still stands as IREN continues scaling AI capacity. A_Capital shares a similar view but emphasizes Hut 8’s larger energy platform and execution risk.

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Disclosure: None.