According to Blockworks, Hut 8 aims to deploy its large stack of bitcoin holdings with discipline heading into the bitcoin halving while further diversifying its revenue streams. The company's CEO, Asher Genoot, revealed during an earnings call that nearly 70% of the company's $60.6 million revenue in the second half of 2023 came from crypto mining. Hut 8 seeks to diversify its revenue streams across its managed services business and boost its standing in the high-performance computing (HPC) and AI realms.
The company entered the HPC space by acquiring wireless connectivity company TerraGo in January 2022 and signed an agreement to offer colocation HPC services to Canadian health authority Interior Health. Genoot acknowledged that the HPC business is sub-scale today and will need more investment to handle AI machines. However, he expressed excitement about the business's potential for growth, especially in GPUs, AI, and data centers.
Hut 8 held 9,110 bitcoin as of February 29, valued at roughly $650 million. The miner plans to use its bitcoin reserves to take advantage of growth opportunities around the Bitcoin halving, expected on or around April 20. The company is considering various M&A opportunities, such as buying sites and properties, as well as machine purchases. However, Genoot emphasized that Hut 8 would not seek growth at all costs and would look to avoid overpaying for sites when possible.