HUT Stock Forecast & Price Target

Hut 8 Corp experienced a remarkable revenue increase of 102% sequentially, reaching $83.5 million in Q3, primarily driven by its Compute segment, which generated $70 million in revenue. The successful exercise of the BITMAIN purchase option, along with reduced power costs and enhanced operational efficiency, has significantly improved gross margin, contributing to a gross profit of $51.2 million, exceeding initial projections. Furthermore, upward revisions to revenue and Adjusted EBITDA estimates for 2027 reflect a strong trajectory in financial performance, with expectations reaching $636 million in revenue and $249 million in Adjusted EBITDA.

Hut 8 Corp faces significant challenges that contribute to a negative outlook, including an inability to secure incremental megawatts at competitive pricing, which may stifle growth in the Compute segment, a primary revenue source. The company's potential for profitability is further jeopardized by Bitcoin price volatility, as declining prices can adversely affect mining profitability and hosting revenues. Additionally, delays in infrastructure buildout and deteriorating relationships with equipment suppliers could hinder operational efficiency, ultimately affecting overall market share and profit margins.