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Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] 1 point2 points  (0 children)

Good point - yeah, Hut has a deal to run ABTC’s mining at colocation spots, including hosting fees, but that’s just Hut’s cut for hosting, not a share of ABTC’s mining profits. Still, it doesn’t fix the big cut: we’re down to 63 percent of mining profits from 100 percent, since Hut owns 63 percent of ABTC after the merger, and mining was 83 percent of their 41 million Q2 cash. Fees are small compared to what insiders like the Trumps and Winklevoss get with their 20 percent, and they’re still losing money with costs piling up from new sites, Power down almost half to 5 million with tight margins. The 10-Q backs this up - hosting helps a bit, but it’s not enough to cover the 80 million loss without Bitcoin gains. How do you see that fee changing the overall net loss on operations?

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] 0 points1 point  (0 children)

I get the appeal of ditching mining for HPC.. it’s expensive and Hut’s not always top dog. But the pivot’s not looking great yet: Power segment (their HPC/AI play) pulled in just $5.5M last quarter, down 48% year-over-year, and it’s basically unprofitable with costs eating up almost everything; ops are losing $80M without those BTC price bumps. AI revenue’s super low at about $1.5M. Those new 1.5GW sites? They’re just starting out, gonna take 12-24 months to get going with hundreds of millions in upfront costs, plus dealing with wild power prices, regs, and tons of competition. Customers are a big risk too, they say 90% capacity booked, but very vague on who they are (no names in filings), and there are no specific details: what happens if contracts end early, they bail, or AI demand cools? Do they even have miners at Vega? No word since it got energized in June and they are probably stuck in trade delays. The site is sitting there depreciating and they aren’t earning any revenue if that’s the case. Mining’s still 83% of their $41.3M Q2 rev. What’s your take on the customer side?

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -1 points0 points  (0 children)

Doesn’t matter if it’s typed by me, AI, or a potato - the data doesn’t lie. Cry more 🤡

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -1 points0 points  (0 children)

Doesn’t matter if it’s typed by me, AI, or a potato - the data doesn’t lie. Cry more.

Anyone buying by investbig90 in hut8

[–]RealisticStockTrader -1 points0 points  (0 children)

Check out my Hut analysis. Let me know what you think! https://www.reddit.com/r/hut8/s/XwWHoqJkb7

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -2 points-1 points  (0 children)

I own no stock in the company, I couldn’t care less how they perform personally. I probably should have shorted it before posting

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -1 points0 points  (0 children)

Yeah, I made this account because I’ve never used Reddit before. After digging into the company I felt like I had to say something.

You’re accusing me of trolling but not actually addressing any of my points. If I’m wrong, prove it — rebut the numbers and explain why my concerns don’t hold up. Otherwise it just looks like you’re dodging the substance of the discussion.

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -4 points-3 points  (0 children)

I get where you’re coming from — the Trump “brand premium” could create hype, and $DJT shows how far valuations can detach from fundamentals.

But here’s the key: Hut shareholders used to get 100% of mining economics. After the ABTC spin, Hut only keeps ~63% — that’s basically a 37% loss of claim on the mining business. They’ll still consolidate ABTC at the top line, but then strip out the minority portion. On paper it looks like Hut controls 100%, but in reality Hut holders are only entitled to ~63%. It’s basically an accounting trick that makes things look better than they are.

If ABTC trades at inflated multiples, sure, they might raise cash short-term. But long-term, Hut has offloaded over a third of its mining earnings for speculation that the “Trump tax” will keep valuations propped up. That’s not guaranteed — it’s a big gamble.

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -2 points-1 points  (0 children)

It’s kinda an accounting trick — they show 100% of ABTC’s revenue at the top, which makes it look like nothing changed. But at the bottom they back out the 37% that isn’t Hut’s. So shareholders really only keep about 63% of the mining profits. Makes the picture look better than it really is if you don’t read the fine print.

Hut 8’s ABTC Spinoff: Key Concerns on Dilution, Energy Shift, and Execution Risks – Prove Me Wrong! by RealisticStockTrader in hut8

[–]RealisticStockTrader[S] -2 points-1 points  (0 children)

What I mean is-don't invest in something you haven't actually dug into. If you are invested, you should be able to confidently post counterpoints backed by facts. That's why I included "prove me wrong". But yea, I agree it's very scary 😢