Hut 8’s (NASDAQ: HUT) Q2 results marked its first full period operating its subsidiary American Bitcoin (ABTC), a change JonesResearch says has effectively turned the miner into a less capital intense, royalty-style business. The firm believes this structure, built on contractual colocation and managed services fees from ABTC, offers more predictable growth potential than directly owning and operating mining rigs.
Hut 8 reported Q2 revenue of $41.3 million and JonesRecearch’s adjusted EBITDA of $3.7 million, missing JonesResearch’s forecasts of $50.6 million and $14.9 million. The gap was primarily due to the absence of revenue recognition for 15 EH/s at Hut 8’s Vega site. Core fees from American Bitcoin totaled about $14.3 million from colocation and $0.9 million from managed services, equating to roughly $26,100 and $1,600 per megawatt per month, respectively, across 183 MW of contracted capacity.
JonesResearch’s analysis of ABTC’s standalone results reveals the miner earned $30.3 million in Q2 mining revenue and $2.4 million in gross profit (8.1% margin) at an estimated hashcost of $47/PH. American Bitcoin’s low general and administrative costs of $2.5 million kept the company’s EBITDA near break-even.
The upcoming ABTC merger with Gryphon Digital Mining (NASDAQ: GRYP) is expected to close in early September, with Hut projected to own 64.37% of ABTC, implying a $4.0 billion stake at ABTC’s current implied market value of $6.2 billion. Hut’s own market cap sits at $2.1 billion. JonesResearch cautions that ABTC’s pre-merger valuation may be inflated by Gryphon’s limited float and prefers to see post-close trading normalize before drawing firm conclusions.
Hut ended Q2 with $216 million in cash. Through August 6, the company raised an additional $21 million via its at-the-market equity offering.
Beyond mining, Hut is advancing HPC projects, including expanding its River Bend site in Louisiana from 300 MW to a targeted 1 GW and building a 50 MW AI/HPC facility in Batavia, Illinois. JonesResearch maintains its Buy rating and $31 price target, based on ~14x EV/EBITDA applied to its 2026 EBITDA forecast of $288 million, adjusted for Hut’s ABTC stake and potential dilution.
Read More: JonesResearch upgrades Riot to Buy, sees 55% upside on HPC execution
At time of publication, HUT is up 6.4% and GRYP is up 0.8%.
