Bitcoin mining firm Hut 8 took $331 million in net income in 2024, according to the company’s latest financial report. The firm benefited significantly from the rise in bitcoin’s price over the year.

Hut 8 finished the year with a reserve of 10,171 bitcoin (BTC), worth approximately $905 million at the time of writing. The vast majority of this reserve has been pledged as collateral to purchase more ASIC mining machines.

The miner saw a sharp reduction in energy costs, with fourth-quarter costs per megawatt-hour dropping by 30% from the previous year to $31.63. While Hut 8 managed roughly 1,020 MW at the end of December, it has more than 12,300 MW in the pipeline.

The company deepened its relationship with Bitmain, one of the largest bitcoin mining firms in the world. Hut 8 secured a colocation deal from Bitmain that is expected to generate $125 million in annual revenue, it is also teaming up with the firm to develop a next-generation ASIC miner.

Hut 8 is increasing its AI infrastructure investments. Its subsidiary, Highrise AI, signed a five-year customer agreement for GPU-as-a-Service. The company also closed a $150 million strategic investment from Coatue to support AI development.

The company’s stock is down 7.25% on the day, bringing its valuation to $1.5 billion.

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