Hut 8 shares fell 5% in Tuesday trading after the Bitcoin miner turned AI infrastructure developer reported second quarter revenue below Wall Street expectations. The stock had dropped as much as 8% earlier in the session.

Adjusted EBITDA, excluding changes in the market value of digital assets, increased to $10.4 million from $4.2 million. Including those changes, adjusted EBITDA was negative $94.6 million.

Shares touched an intraday low of $101.20 before recovering to around $107, leaving the stock down about 4.5% during late morning trading.

The earnings report largely reiterated recent progress in Hut 8’s transition from Bitcoin mining toward large scale AI and energy infrastructure.

Hut 8 now has 949 MW of contracted AI data center capacity carrying approximately $26.6 billion in expected base term contract value. The portfolio is projected to generate more than $1.75 billion in average annual net operating income once operational.

The company recently completed the commercialization of its one gigawatt Beacon Point campus after signing a second 352 MW lease. The two Beacon Point agreements represent about $19.6 billion in combined expected contract value.

Hut 8’s total development pipeline reached approximately 8.7 GW at the end of June, up about 300 MW from the previous quarter. The pipeline includes 1.88 GW of capacity under exclusivity and 1.33 GW already under construction.

CEO Asher Genoot said on the company’s earnings call that Hut 8 was evaluating 11 exclusive sites averaging more than 650 MW each. He added that the company deliberately excludes less developed opportunities, including acquisitions and a potential expansion of its River Bend campus, from the reported pipeline.

Genoot also pushed back against concerns that demand for AI infrastructure is beginning to weaken.

“Demand is robust,” Genoot said. “Everyone wants capacity.”

Construction is continuing at the River Bend and Beacon Point campuses. Hut 8 expects the first River Bend data hall to be delivered in the second quarter of 2027, followed by the first Beacon Point data hall in the third quarter of 2027. The company is also evaluating financing structures for Beacon Point Phase 2.

Management also outlined a shift in its Bitcoin strategy, with future direct exposure expected to sit primarily inside American Bitcoin, Hut 8’s majority owned subsidiary.

Genoot said Bitcoin held directly by Hut 8 would be treated like any other balance sheet asset, rather than serving as the company’s main source of crypto exposure.

The strategy further separates Hut 8’s infrastructure business from its Bitcoin mining operations as management focuses on delivering contracted AI capacity and converting its multibillion dollar development pipeline into recurring revenue.