Hut 8 Corp. Q1 FY2026 earnings call

• CEO Asher Janute discussed the company's mission of building foundational infrastructure for technology shift, starting with power and positioning as partners. • Restructured business over 2 years, including carving out Bitcoin business, divesting power generation assets, rebuilding balance sheet. • Announced commercialization of BeaconPoint AI data center campus, repeating the power first greenfield development model. • Walked through key terms of BeaconPoint transaction, including 15-year triple net lease, 352 MW IT capacity, $9.8B expected base term contract value. • Discussed financing for Riverbend, including $3.25B investment grade senior secured notes, which removes refinancing risk, fully funds project, and allows equity pullout. • Emphasized de-risking delivery through investment grade rating during construction, best-in-class partners, accountability in organization, conservative timelines, and track record. • Talked about investing in specific talent types and structuring teams for growth. • CFO Sean Glennon discussed financials, reconciling net loss with underlying operating performance, driven by unrealized mark-to-market losses on digital assets, but revenue growth and margin expansion.

Power segment: Revenue down YoY after sale of power generation portfolio, but margins improved. Revenue was $3.7M (vs $4.4M prior year), segment margins ~44%. Digital infrastructure segment: Revenue flat YoY, expected to become primary growth driver from Q2 2027. Compute segment: Revenue more than tripled to ~$66M from $16.1M, margins expanded to ~67%, driven by improved uptime and commencement of operations at Vega, but offset by decrease in average revenue per Bitcoin mine.

• BeaconPoint commercialization and Riverbend financing are structural milestones. • Contracted revenue base, investment grade counterparties, and long duration financing lead to high earnings quality, durable cash flows, and compelling equity return profile. • Priorities for rest of year are execution of current projects (Riverbend and BeaconPoint) and scaling the 8.4 gigawatt development pipeline. • Focus on delivery execution, deal quality, and balance sheet discipline. • Expectations for continued growth and scaling in a disciplined way, with the business transitioning to a contracted infrastructure-like model with high visibility and strong margins.

Q: Clarifying questions on Beacon, CapEx range and revenue to NOI.

A: CapEx guided to same range as Riverbend (9-11 million dollars per megawatt). Revenue drops to NOIs as cost of maintaining building and landscaping is de minimis, above 99.9% margin.

Q: How to think about power prioritization for ABTC.

A: Different types of campuses, symbiotic relationship, ABTC has capacity, innovation in infrastructure stack.

Q: NVIDIA's role in BeaconPoint and sizing/phasing.

A: NVIDIA is technology partner, density of building is key. Tenant has ROFO right on remaining capacity.

Q: Tenant confidentiality and deal quality.

A: Confidentiality due to focus on execution, deal is part of a program with locked in commitments.

Q: Success by 2030 and biggest constraint.

A: Success involves a mature data center platform, focus on innovation. Biggest constraint includes energy, regulatory environment, and sentiment towards AI and data centers.

Q: Next incremental 500 gross megawatts at BeaconPoint and anthropic relationship.

A: 700 megawatts available in Q1, additional 300 megawatts in 24 months. Strong relationship with anthropic, but tenant diversification is important.

Q: Power first approach and behind-the-meter opportunities.

A: Behind-the-meter projects part of playbook for 4 years, involved in various power opportunities.

Q: Complexity and structural handling of deals.

A: Complexity from power sourcing, regulatory, design, infrastructure stack. Structurally handling deals with programmatic program and structure, standards of design and execution.

Q: Pipeline and impact on utilities.

A: Conversation with utilities changed, HUD-8 is a recognized name, credibility within sector is high.