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MIAMI - Hut 8 Corp. (NASDAQ:HUT, TSX:HUT) announced Monday it has entered into a definitive agreement to sell its 310-megawatt portfolio of four natural gas-fired power plants in Ontario to TransAlta Corporation (NYSE:TAC, TSX:TA). The announcement comes as Hut 8, currently valued at approximately $4 billion in market capitalization, has seen its stock price drop over 21% in the past week despite posting a 115% gain over the last six months, according to InvestingPro data.
The portfolio, owned and operated by Far North Power Corp., a joint entity formed by Hut 8 and Macquarie Equipment Finance Ltd., was previously acquired out of bankruptcy and subsequently stabilized by Hut 8.
Earlier this year, Far North secured five-year capacity contracts for the entire portfolio through the Ontario IESO Medium-Term 2 auction, transitioning the assets from short-term arrangements to long-term revenue commitments while maintaining merchant energy revenue potential.
"Our power-native team executed a disciplined program to strengthen the four natural-gas power plants comprising the Portfolio, enhancing their operational and commercial footing," said Asher Genoot, CEO of Hut 8.
The transaction aligns with Hut 8's strategic shift toward digital infrastructure development. The company plans to prioritize capital allocation toward its multi-gigawatt pipeline of development opportunities across North America.
"These are attractive contracted facilities, but they are not core to our current strategy or capital plan, which is focused on high-return opportunities within our development pipeline," said Sean Glennan, CFO of Hut 8.
For TransAlta, the acquisition strengthens its position in Ontario's energy market.
"As electrification and population growth continues, the market will meaningfully rely on existing firm, dispatchable generation for grid reliability," said John Kousinioris, President and CEO of TransAlta.
CIBC Capital Markets served as financial advisor to Hut 8, with Bennett Jones LLP providing legal counsel.
The announcement was made in a press release statement from the company. Financial terms of the transaction were not disclosed.
In other recent news, Hut 8 Corp reported strong financial results for the third quarter of 2025, showcasing significant year-over-year growth in both revenue and net income. Despite these positive financial metrics, the company's stock experienced a substantial decline, which may be linked to concerns about future earnings projections and competitive pressures. Additionally, cryptocurrency-related stocks, including Hut 8 Corp, faced a challenging period as Bitcoin fell below the $100,000 mark, impacting major crypto companies across the board. Hut 8 Corp, along with Riot Platforms and IREN Limited, saw their stocks drop by 12%. Other companies like Cipher Mining and CleanSpark also recorded significant declines. These recent developments reflect the volatile nature of the cryptocurrency market and its influence on related stocks.
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