Hut 8 Corp. Rallies on Power Deal as Bitcoin Miners Rebound with BTC at $110K
ArcStone Financial Pulse | July 4, 2025
Category: Digital Infrastructure & Crypto Mining
Hut 8 Corp. (NASDAQ: HUT) (“Hut 8”) led crypto mining equities higher on Wednesday, rising 9.4% intraday after announcing a five-year capacity agreement with Ontario’s Independent Electricity System Operator (“IESO”). The deal secures dispatch rights and fixed payments across 310 MW of power generation capacity operated by Hut 8 and its joint venture with Macquarie Equipment Finance.
The agreement is structured around IESO’s Capacity Auction framework, with commercial operations expected to begin in May 2026. It is designed to provide long-term revenue stability while preserving the optionality to direct power to mining or grid sales, depending on prevailing economic conditions.
Bitcoin rose 2.3% on the day to trade near US $108,600, now hovering around US $110,000 extending a multi-week recovery driven by institutional buying, post-halving fee dynamics, and rising stablecoin issuance.
Sector Snapshot – Intraday Performance (July 2, 2025)
Ticker | Company | Performance (%) | Market Cap (As of Close July 2nd) |
BITF | Bitfarms Ltd. | +17.4% | US $562.2M |
BTBT | Bit Digital Inc. | +11.9% | US $745.7M |
MARA | Marathon Digital Holdings | +11.6% | US $6.3B |
CLSK | CleanSpark Inc. | +9.7% | US $3.5B |
HUT | Hut 8 Corp. | +9.4% | US $2.2B |
HIVE | HIVE Digital Technologies Ltd. | +9.2% | US $452.7M |
RIOT | Riot Platforms Inc. | +5.8% | US $4.4B |
CORZ | Core Scientific Inc. | +2.2% | US $5.2B |
Source: Yahoo Finance, July 2, 2025
Energy Mining Insight
Energy Certainty Becomes a Valuation Driver
Hut 8’s IESO-backed agreement provides a contractual baseline for its Ontario fleet, de-risking power input costs over a multi-year horizon. The firm will receive fixed payments indexed to inflation under the province’s Capacity Auction framework. Sites are located near hydro and nuclear assets, which may strengthen long-term positioning amid evolving ESG requirements.
As volatility in North American power markets persists, particularly in the U.S. South and West, contracted access to low-carbon dispatchable generation is becoming a differentiator in how the market values miners.
Capital Markets View
• Shift Toward Yield Structures
With Bitcoin network economics stabilizing post-halving, capital is beginning to reprice mining businesses that can deliver predictable margins through power strategy rather than scale alone.
• Jurisdictional Differentiation Resumes
Canadian provinces, such as Ontario and Quebec, are emerging as preferred venues due to regulatory transparency and grid reliability, in contrast to the more volatile U.S. markets.
• Selective Re-Rating Underway
Investors favour miners with low debt, high efficiency, and flexible energy monetization, especially those that can toggle between grid sales and self-mining depending on BTC price.
Hut8 Key Metrics to Track
Metric | Hut 8 Corp. Status |
BTC Held in Reserve (March 31st 2025) | 10,264 BTC |
Energy Cost per MWH | US $51.7 |
Hashrate (EH/s) | 9.3 EH/s (Q1 2025) |
Balance Sheet | US $108.4M cash (Q1) |
Power Agreements | 1330 MW secured including new IESO deal |
ArcStone View
The IESO capacity agreement represents a structural improvement in Hut 8’s power portfolio, potentially enhancing operating visibility and capital efficiency over the medium term. The deal underscores a broader shift within the mining sector toward grid-integrated strategies and formalized capacity monetization.
While the operational and financial impact will depend on execution, Hut 8’s approach aligns with trends favouring hybrid infrastructure models that combine crypto-native flexibility with regulated energy market participation.
