Why Is Hut 8 Corp. (HUT) Among the Hottest Mid-Cap Stocks So Far in 2025?

We recently compiled a list of the 10 Hottest Mid-Cap Stocks So Far in 2025. In this article, we are going to take a look at where Hut 8 Corp. (NASDAQ:HUT) stands against the other mid-cap stocks.

If you’ve been fixated on the usual suspects in the S&P 500, you might be missing out on some solid action. Many mid-cap stocks have been delivering stellar gains in the first few weeks of this month, and there’s a good chance the momentum will stick around.

We believe they’ll prove to be more nimble than the large-cap stocks. It’s worth looking at them because they are comparatively trading at more attractive valuations and they also strike the sweet spot between the stability of large caps and the growth potential of small caps.

The S&P MidCap 400 index has outpaced the S&P 500 index year-to-date. It’s not just a flash in the pan, either. Historically, mid-caps have outperformed both their larger and smaller counterparts in 55% of rolling five-year periods since 1983. As such, it’s worth looking deeper into each top mid-cap performer.

We’ve screened the top mid-cap stocks trading in U.S. exchanges by their year-to-date gains.

A close-up of a cryptocurrency mining rig in a large warehouse facility.

Hut 8 Corp. (NASDAQ:HUT)

• YTD Performance: 23%

Hut 8 Corp (NASDAQ:HUT) mines Bitcoin (BTC-USD), so it’s pretty obvious why this company is on this list. Bitcoin is over $104,000 as of writing and there’s chatter on CNBC about it potentially doubling this year. I personally don’t think that’s going to happen, but you never know where market mania could carry this.

Regardless, it announced plans to upgrade its mining fleet in December and increase its Bitcoin mining capacity. It’s also working on a major project called Vega, a 205 MW facility set to come online in Q2 2025. It is also moving into AI computing power, though Bitcoin mining is still its main business by a long shot (about 60-70% of its revenue).

As with any investment in the crypto space, any investment here will be on the whims of Bitcoin’s erratic price action. As such, it’s very tough to gauge where HUT stock could be at the end of the year. The consensus price target is around $33.

Overall HUT ranks 9th on our list of the hottest mid-cap stocks so far in 2025. While we acknowledge the potential of HUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUT but that trades at less than 5 times its earnings, check out our report about thecheapest AI stock.

READ NEXT: 10 Hottest Mega-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025

Disclosure: None. This article is originally published at Insider Monkey.