Markets · Earnings
Hut 8 sold about 3,100 bitcoin to buy back its own stock
Hut 8 sold about 3,100 bitcoin to retire 3.3 million of its shares for about $250 million, then raised its buyback authorization to $1.0 billion, its Nov. 4 filing shows.
Hut 8 sold about 3,100 bitcoin to buy back its own stock
Hut 8 turned bitcoin into buybacks. The company sold coins and used the cash to retire 3,338,479 of its own shares for about $250.0 million, using up its original buyback program, and on Nov. 2 its board raised the total authorization to $1.0 billion, its Nov. 4 filing shows [2]. Hut 8, which calls itself an energy infrastructure platform and builds data centers for artificial-intelligence customers, reported third-quarter net income of $189.5 million, mostly unrealized gains on the bitcoin it holds [2].
The mechanism
Hut 8 sold bitcoin to buy back stock. A buyback is a company purchasing its own stock; when the shares are retired, they stop existing, so each remaining share is a larger slice of the company.
The filing ties each tranche to a coin sale. In the third quarter Hut 8 retired 953,802 shares for $74.7 million, "funded with net proceeds of $74.8 million from the sale of approximately 954 Bitcoin" [2]. After the quarter ended it retired 2,384,677 more for $175.3 million, funded by $175.4 million from about 2,148 bitcoin [2]. By Le Coin's arithmetic on those two lines, that is about 3,102 bitcoin sold for $250.2 million of net proceeds, almost all of it spent on stock.
The program began in December 2024 at $250.0 million, "with no expiration date" [2]. With that amount used, the board approved an additional $750.0 million, and the filing says "all other terms of the program remain unchanged" [2]. Hut 8 had 120,037,556 shares outstanding as of Nov. 2 [3].
The evidence
| Hut 8 buyback tranches | Bitcoin sold (approx.) | Net proceeds | Shares retired | Repurchase cost |
|---|---|---|---|---|
| Third quarter 2026 | 954 | $74.8M | 953,802 | $74.7M |
| After Sept. 30 | 2,148 | $175.4M | 2,384,677 | $175.3M |
| Cumulative under the $250M program | — | — | 3,338,479 | ~$250.0M |
Source: Hut 8 Corp. Form 8-K, Ex. 99.1, Nov. 4, 2026 [2]. Table: Le Coin.
Hut 8 still held plenty of bitcoin at quarter-end. Its quarterly report says the consolidated balance sheet carried about 16,787 bitcoin on Sept. 30: about 8,360 held by Hut 8 and about 8,427 held by American Bitcoin, a bitcoin accumulation company whose results Hut 8 consolidates [3]. The release values those holdings at $697.4 million attributable to Hut 8 and $702.9 million attributable to American Bitcoin [2]. The larger post-quarter sale came after that count, and the filings give no newer one.
The income statement shows how much of the quarter came from bitcoin's price rather than operations.
| Hut 8, three months ended Sept. 30 | 2026 | 2025 |
|---|---|---|
| Total revenue | $71.1M | $83.5M |
| Gain on digital assets (primarily unrealized) | $413.8M | $76.6M |
| General and administrative expense | $99.6M | $25.9M |
| Interest expense | $105.5M | $8.6M |
| Net income (mostly unrealized gains) | $189.5M | $50.6M |
| Net income attributable to Hut 8 Corp. | $131.1M | $50.1M |
| Adjusted EBITDA (non-GAAP) | $33.0M | $30.5M |
Source: Hut 8 Corp. Form 8-K, Ex. 99.1, Nov. 4, 2026 [2]. Table: Le Coin.
Revenue fell 15% to $71.1 million, almost all of it from Compute, at $68.4 million [2]. Net income of $189.5 million, mostly unrealized, rested on a $413.8 million gain on digital assets that the filing calls "primarily unrealized" [2]. Unrealized means the coins were marked up in value on paper, not sold. Adjusted EBITDA, a non-GAAP measure, meaning one not defined by standard accounting rules, was $33.0 million; Hut 8 revised that measure in the second quarter of 2026 to exclude bitcoin's mark-to-market [2].
The objection
Hut 8 isn't walking away from bitcoin. It kept about 8,360 coins of its own at Sept. 30, and American Bitcoin held a similar number [3]. The cash from the coins it sold went to shareholders through a smaller share count, not into operating costs [2].
The bigger business is elsewhere. The release leads with data centers: a second 352-megawatt lease at its Beacon Point campus with the same tenant as the first, bringing what the company calls "expected aggregate base-term contract value" across its AI data-center portfolio to about $26.6 billion [2]. It reported about $6.6 billion in unrestricted cash, restricted cash and equivalents, and restricted short-term investments, and closed a four-year $1.07 billion revolving credit facility, a secured credit line it can draw on as needed, with nothing borrowed under it at Sept. 30 [2].
The $1.0 billion is also a ceiling, not a commitment. Hut 8 trades on the Toronto Stock Exchange as well as Nasdaq, and the filing states the limit once: "Under applicable Canadian securities regulations, the number of shares that the Company can repurchase at any time may not exceed 5.0% of the Company's issued and outstanding Common Stock during the preceding 12 month period" [2]. As of Nov. 2 that cap was 6,001,877 shares, "before reducing for any prior repurchases within 12 months" [2].
The tell (Le Coin's view)
In Le Coin's view, the line worth watching is where the next dollar of bitcoin goes. Hut 8 has now shown, in a filing, that it turned coins into a smaller share count, and its board has raised the budget for doing so to $1.0 billion. The next quarterly report will show whether the bitcoin count kept falling as the share count did. The Canadian cap counts shares, not dollars, so it sets the pace.
Sources
- [1] Hut 8 Corp., Form 8-K, Items 2.02 and 9.01, accession 0001104659-26-122347, accepted Nov. 4, 2026, 6:37 a.m. ET, https://www.sec.gov/Archives/edgar/data/1964789/000110465926122347/tm2628741d1_8k.htm ; accessed 7:18 a.m. ET Nov. 4.
- [2] Hut 8 Corp., Exhibit 99.1, "Hut 8 Reports Third Quarter 2026 Results," Nov. 4, 2026, https://www.sec.gov/Archives/edgar/data/1964789/000110465926122347/tm2628741d1_ex99-1.htm ; accessed 7:18 a.m. ET Nov. 4.
- [3] Hut 8 Corp., Form 10-Q for the quarter ended Sept. 30, 2026, accession 0001193125-26-446146, accepted Nov. 4, 2026, 6:30 a.m. ET, https://www.sec.gov/Archives/edgar/data/1964789/000119312526446146/hut-20260930.htm ; accessed 7:28 a.m. ET Nov. 4.
Holding the Corner.
Not financial advice.