This 1 Stock Could be the Future of Crypto and AI in Canada

Looking for a Canadian stock sitting right at the crossroads of cryptocurrency and artificial intelligence (AI)? Then Hut 8 (TSX:HUT) is one of the most exciting names to watch. It’s a Canadian stock that has evolved from a pure-play Bitcoin miner into something much more ambitious. In a market where both crypto and AI continue to dominate headlines, Hut 8 could be a major player. And with the stock trading below all-time highs, there may be a compelling opportunity here for long-term investors.

About Hut 8

Hut 8 made waves when it merged with U.S. Bitcoin to form a new cross-border mining and infrastructure firm. Now operating as a more diversified company, it’s no longer just about mining Bitcoin. It also manages high-performance computing facilities and is investing heavily in powering AI infrastructure. This dual focus could give Hut 8 a unique edge, especially in a Canadian market where few other public companies are positioned in both crypto and AI.

As of writing, the Canadian stock trades at around $24.50 per share, with a market cap of $2.6 billion. While it has had a volatile history, recent moves by the Canadian stock suggest it’s aiming to become more stable and strategic. In its most recent quarterly earnings report for Q1 2025, Hut 8 posted revenue of US$21.8 million. However, the company also reported a net loss of US$134 million and an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of US$117.7 million. Those numbers may raise eyebrows, but much of the loss was tied to the company’s aggressive expansion strategy.

This expansion includes building up its power infrastructure to handle high-performance computing for artificial intelligence workloads. Hut 8 reported a 79% quarter-over-quarter increase in hashrate and a 37% improvement in fleet efficiency. It now controls 1,020 megawatts of power capacity and has identified a future pipeline of over 10,800 megawatts. That kind of power isn’t just for mining crypto, it’s increasingly being used to support AI model training and large-scale data processing.

More to come

Hut 8 also made a key financial move by renegotiating its Bitcoin-backed credit facility with Coinbase, increasing it from US$65 million to US$130 million. The deal locks in a fixed 9% interest rate and extends the loan maturity to July 2026. It’s a non-dilutive financing option that gives the Canadian stock breathing room and capital to continue scaling. The terms also include a no-rehypothecation clause, meaning the Bitcoin used as collateral is protected. That’s a smart, strategic way to access cash without putting shareholders at risk of dilution.

Another development worth noting is the company’s investment in Highrise AI, a new division focused on graphics processing unit (GPU)-based AI computing. This business segment provides services like GPU-as-a-service to third-party companies building large-scale AI systems. With GPU demand at all-time highs, this could be a significant revenue stream down the line. It’s still early, but Hut 8 is laying the groundwork to become a critical part of the digital infrastructure that powers future tech.

There’s no denying that Hut 8 comes with risk. Its reliance on Bitcoin prices still drives much of the business, and mining is notoriously volatile. But by diversifying into AI compute services and data infrastructure, the Canadian stock is positioning itself to weather downturns better than some of its peers. It’s no longer just a speculative crypto play; it’s slowly transforming into a Canadian tech infrastructure company with real-world utility.

Bottom line

For Canadian investors seeking exposure to these two powerful trends, Hut 8 might just be the Canadian stock to watch. It’s still early in its next chapter, but the steps it’s taking suggest that this could be one of the most important TSX-listed companies in the digital future. If you believe in both crypto and AI, this is one investment that puts you in the middle of the action.

The post This 1 Stock Could be the Future of Crypto and AI in Canada appeared first on The Motley Fool Canada.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• This 4.4% Dividend Stock Is Built for Volatile Markets
• How to Turn $25,000 Into $250,000 From Monthly Dividends
• I’d Buy This 6.8% Energy Stock Before Oil Prices Spike Again
• 2 Monthly Payers to Own During a Geopolitical Meltdown
• The TSX Stock I’d Buy Now if You’re Worried About a U.S. Recession

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.

www.fool.ca (Article Sourced Website)

#Stock #Future #Crypto #Canada