HUT was traditionally a bitcoin miner, but like many other miners, it has pivoted some of its strategy toward high performance computing (HPC). It defines itself as an energy infrastructure platform, where it operates three main segments: 1) Power: acquiring and managing energy assets like powered land (20% of sales), 2) Digital infrastructure: purpose-built facilities for energy-intensive applications (6%), and 3) Compute: specialized hardware for bitcoin mining and data center cloud GPU-as-a-service (74%).
Forward sales growth is expected to be strong (30%+), but it is not yet profitable, and it is cash flow negative. HUT owns over 10,000 BTC, which is approximately $1.1B in value. It is a $2.2B company, and so roughly half of its value is in BTC held on the balance sheet, and the remaining value is through its HPC and bitcoin mining services. We think it is interesting, but we would like to see the company work towards profitability and achieve some degree of free cash flows.