HUT Stock Extends Losing Streak To Seven Weeks Despite Friday Rebound As Texas AI Data Center Concerns Mount

On Friday, HUT8 stock was still 8% above its previous worst weekly close back in April.

• The company posted its Q3 revenue on Wednesday, and the revenue for the quarter was nearly $71 million.
• This was down from $83.5 million in the same quarter last year.
• Hut8 said it was targeting delivery of the first data hall at its River Bend campus by the second quarter of 2027. 

Hut 8 Corp. (HUT) stock posted its lowest weekly close in seven months on Friday, extending its losing streak to a seventh straight week.

This stock’s weekly close dropped more than 11%. That makes it the stock's worst close in a week since early April. Most of the slide came after the company reported third-quarter results on Wednesday.

The stock fell roughly 28% from Tuesday's close to Thursday's close. 

HUT stock rebounded briefly, closing over 14% up on Friday. On Stocktwits, retail sentiment around HUT remained in the ‘bullish’ zone, accompanied by ‘high’ chatter levels over the past day.

Why HUT Stock Was Under Pressure This Week

The selloff also comes amid political uncertainty in Texas, where Hut 8 is constructing its Beacon Point site. Investors' sentiment was impacted by the state's new governor may have on the project. According to an Investing.com report, the Democratic governor-elect campaigned on putting a freeze on new data center construction. 

According to the report, the existing administration had already halted the permitting process in preparation for a December audit. On Thursday, many Wall Street firms lowered their price forecasts for Hut 8, citing concerns about permitting risks at the 1,000-megawatt Nueces County facility.

Revenue Falls Short Of Estimates

Hut 8's revenue for the quarter was nearly $71 million, down from $83.5 million in the same quarter last year. The company also reported a loss of $1.23 per share. The company said net income stood at $189.5 million. That also includes $413.8 million in mostly unrealized gains on its Bitcoin (BTC) and digital asset holdings. The value of the tokens still held by Hut 8 has risen instead of in cash from the sale, creating unrealized gains.

Bitcoin Sales Fund Buybacks

The company said unrestricted cash declined to $156.9 million from $233.6 million. Separately, the company sold around 954 Bitcoin, raising $74.8 million in cash in the process.

In October, it sold another 2,148 Bitcoins for $175.4 million. The filing also showed that $250 million went to buybacks. The company said Hut 8's board approved an additional $750 million in buybacks. That increased the total authorization to $1 billion.

Hut 8 Targets 2027 Launch For AI Data Centers

Hut 8 has been shifting its focus from Bitcoin mining to the construction of data centers for artificial intelligence. The company said it is targeting delivery of the first data hall at its River Bend campus in the second quarter of 2027. 

Until then, its compute business is still driving the top line. The company said the unit, which includes Bitcoin mining and cloud services, generated $68.4 million of the quarter's revenue.

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