Hut 8 (HUT) investor relations material

Key themes and industry evolution

• Panelists highlighted the rapid evolution from Bitcoin mining to high-performance computing (HPC) and AI-driven data center models, emphasizing the need for flexible business strategies to adapt to changing technology and market demands.

• Companies are leveraging their expertise in energy management, power procurement, and data center development to diversify revenue streams and maximize asset utilization.

• Strategic partnerships, acquisitions, and investments in renewable energy and edge computing are central to future growth and resilience.

• The ability to rapidly deploy and retrofit data centers is seen as a competitive advantage, enabling faster monetization of power assets and meeting surging demand for compute.

• National security concerns and regulatory scrutiny are increasingly relevant as the sector grows, particularly regarding foreign ownership and control of critical infrastructure.

Business models and asset strategies

• Companies are shifting from asset-light to asset-heavy models, acquiring and operating their own power generation and data center facilities to reduce costs and increase control.

• Teams with deep expertise in power origination, data center construction, and operations are viewed as key differentiators, driving innovation and long-term value.

• Some firms are spinning off or restructuring business units to focus on distinct asset classes, such as separating Bitcoin accumulation from infrastructure operations.

• Retrofit models for data center buildouts are favored for speed and cost efficiency, with several companies citing successful conversions of industrial sites into high-density compute facilities.

• Treasury strategies vary, with some firms holding significant Bitcoin or Ethereum reserves, while others focus on yield generation or pure-play AI infrastructure.

Market outlook and future trends

• The next five years are expected to bring significant growth in data center capacity, with multi-hundred-megawatt campuses and higher densities becoming the norm.

• Integration of Bitcoin mining with traditional and AI data centers is anticipated, leveraging the curtailability of mining loads to optimize grid interactions and asset utilization.

• Edge computing and modular AI infrastructure are seen as emerging opportunities, particularly for clients with security and data sovereignty needs.

• Competitive advantage will depend on the ability to secure and develop large-scale power assets, innovate in infrastructure design, and adapt to evolving customer requirements.

• The industry is likely to see new entrants and business models, with companies finding specialized niches as demand cycles and technology evolve.