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Hut 8 (HUT) stock has gone ballistic in the last 12 months, with returns of over 200% during the period. The upside has been backed by strong fundamental developments that include the company’s growth in EBITDA and expansion plans for the energy infrastructure segment. The big rally has, however, not been a deterrent for fresh exposure in the energy infrastructure and Bitcoin (BTCUSD) mining company. According to Schedule 13Gs filed on Oct. 23, Jane Street reported beneficial ownership of 5% in HUT stock. With impending growth acceleration, the outlook remains positive. About HUT Stock Hut 8 started operations as a pure-play Bitcoin miner. However, the company has diversified as a vertically integrated operator of energy infrastructure. Its overall business plan is to drive growth in next-generation, energy-intensive use cases such as Bitcoin mining and high-potential computing. As of Q2 2025, Hut 8 had 1,020 megawatts of energy capacity under management across 15 sites. Further, as of June 2025, the company held 10,667 Bitcoin reserves. For Q2 2025, Hut 8 reported revenue and adjusted EBITDA of $41.3 million and $221.2 million, respectively. The EBITDA surged primarily on the back of gains in digital assets. With healthy growth and ambitious expansion plans, HUT stock has skyrocketed by over 300% in the last six months. Strong Fundamentals to Support Growth With the company’s aggressive growth strategy, a key factor to consider is the financial flexibility. As of Q2 2025, Hut 8 reported a cash buffer of $216 million. Further, as of August 2025, the value of digital assets held in the balance sheet was $1.2 billion. This implies a cash buffer of $1.4 billion. It’s also worth noting that Hut 8 has expanded its Bitcoin-backed credit facility with Coinbase (COIN) from $65 million to $130 million. Of this, $65 million remains undrawn as of Q2 2025. If the company’s at-the-market (ATM) equity program is included, the total liquidity buffer swells to $2.4 billion. The company also has interest from banking partners for providing project-level financing. Therefore, there are unlikely to be any financing headwinds. Hut 8 reported total debt of $315 million as of Q2. That said, with healthy growth in the pipeline, debt servicing is unlikely to be a concern. Overall, Hut 8 has high financial flexibility to pursue aggressive expansion plans, and there is unlikely to be any credit stress. Ambitious Development Pipeline A key reason for HUT stock surging higher is the company’s development pipeline in the energy infrastructure segment. To put things into perspective, Hut 8 reported commercialized capacity of 1,020 MW as of August 2025. Further, the capacity under development is 1,530 MW, which includes four new expansion sites. Hut 8 also has 1,255 MW of capacity under exclusivity (clear path to ownership). Finally, a significant 6,815 MW is under diligence. These are sites identified for high-performance computing and Bitcoin mining. On a consolidated basis, the company’s capacity of 10,620 MW points towards sustained growth. What Analysts Say About HUT Stock Based on the rating by 17 analysts, the outlook for HUT stock is significantly bullish. Currently, 14 analysts have assigned a “Strong Buy” rating for the stock, with two analysts opining that the stock is a “Moderate Buy.” It's, however, worth noting that the mean analyst price target of $43.19 is 18% below the current stock price of $52.36. Having said that, the most bullish price target is $74 and implies an upside potential of 41%. The bullish outlook is underscored by the point that Hut 8 has ambitious growth plans for the next few years. Once the development pipeline translates into actual numbers, earnings growth is likely to be robust.
