Author: Sam Dias

MEDIA CONTACT:

Erin Dermer

Hut 8 Mining Production and Operations Update for October 2023

Posted on 6 November 20235 December 2023 by Sam Dias

At 9,113 BTC, Hut 8 continues to have one of the largest self-mined Bitcoin reserves of any publicly traded company

112 Bitcoin mined in October

TORONTO, November 6, 2023 – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 112 Bitcoin in October 2023.

Production highlights for October 2023:

112 Bitcoin were generated, resulting in an average production rate of approximately 3.6 Bitcoin per day
365 Bitcoin – 66 Bitcoin produced in July, all of August’s and September’s production, and 85 Bitcoin produced in October – were sold during the month for proceeds totalling CAD$14.6 million (average proceeds per Bitcoin of approximately CAD$39,980)
Total balance of Bitcoin in reserve was 9,113 on October 31 – 7,016 of which were unencumbered
Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month
Hut 8 produced 43.1 BTC/EH in October

Corporate Update:

On November 3, Hut 8 announced that it received approval from the Ontario Superior Court of Justice (Commercial List) (the “Court”) for its stalking horse bid (the “Stalking Horse Bid”) to acquire four natural gas power plants in Ontario, totaling approximately 310 MW and a Bitcoin mine in North Bay. The Stalking Horse Bid is part of the previously announced support agreement with Macquarie Equipment Finance Ltd (“Macquarie”) and was approved by the Court in connection with a sale and investment solicitation process (“SISP”). If the Stalking Horse Bid is ultimately declared the successful bid in the SISP, as further approved by the Court, and completed in accordance with its terms, a new Ontario subsidiary of the Company (“BidCo”) will become the owner of certain assets of Validus Power Corp. (“Validus”) and the assets and operations of certain Validus subsidiaries. Macquarie will receive a minority equity interest in BidCo of approximately 20% and a subsidiary of Hut 8 will be the majority owner with the remaining approximately 80%.

“While our mining results remained steady month over month, we made meaningful progress toward building an infrastructure-first, diversified operation that we believe will be a first in our industry,” said Jaime Leverton, CEO of Hut 8. “Between being granted approval to submit a stalking horse bid for approximately 310 MW of natural gas power plant assets in Ontario, including our former North Bay site, and our work to close our proposed business combination with US Bitcoin Corp., we are making headway toward creating a new Hut 8 that we believe will have vertically integrated mining operations with revenue generating optionality; diversified fiat revenue streams in high performance computing, hosting, and managed services; and a significant North American footprint, which would position us well to capture upside as we head into the next halving.”

About Hut 8

Cautionary Note Regarding Forward–Looking Information

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

Hut 8 Mining Production and Operations Update for September 2023

Posted on 10 October 20235 December 2023 by Sam Dias

At 9,366 BTC, Hut 8 continues to have one of the largest self-mined Bitcoin reserves of any publicly traded company

111 Bitcoin mined in September

TORONTO, October 10, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 111 Bitcoin in September 2023.

Production highlights for September 2023:

111 Bitcoin were generated, resulting in an average production rate of approximately 3.7 Bitcoin per day
No Bitcoin were sold during the month
Total balance of Bitcoin in reserve was 9,366 on September 30 – 7,269 of which were unencumbered
Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month
Hut 8 produced 42.7 BTC/EH in September

Additional highlights:

At a special meeting held on September 12, shareholders of the Company overwhelmingly approved the proposed business combination (the “Transaction”) with U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”), to be effected by way of a court approved plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia), an important step toward completing the Transaction
On September 15, the Supreme Court of British Columbia issued a final order approving the Arrangement, a key requirement to completing the Transaction with USBTC

“Progress toward completing our transaction with USBTC continues, and we’re grateful to our shareholders who demonstrated their overwhelming support by voting in favour of the merger,” said Jaime Leverton, CEO of Hut 8. “The vote, along with the Supreme Court of British Columbia’s approval of our plan of arrangement, continue to advance us toward a new Hut 8, which will have highly diversified fiat revenue streams in high performance computing, hosting, and managed infrastructure operations, all of which are intended to capture upside and solve for the challenges that single-threaded miners will face going into the next halving.”

About Hut 8

Cautionary Note Regarding Forward–Looking Information

Additional Information about the Transaction and Where to Find It

In connection with the Transaction of Hut 8 and USBTC, that, if completed, would result in Hut 8 Corp. (“New Hut”) becoming a new public company, New Hut has filed a registration statement on Form S-4 (the “Form S-4”) with the U.S. Securities and Exchange Commission (the “SEC”). USBTC and Hut 8 urge investors, shareholders, and other interested persons to read the Form S-4, including any amendments thereto, the Hut meeting circular, as well as other documents to be filed with the SEC and documents to be filed with Canadian securities regulatory authorities in connection with the Transaction, as these materials will contain important information about USBTC, Hut 8, New Hut and the Transaction. New Hut also has, and will, file other documents regarding the Transaction with the SEC. This press release is not a substitute for the Form S-4 or any other documents that may be sent to Hut’s shareholders or USBTC’s stockholders in connection with the Transaction. Investors and security holders will be able to obtain free copies of the Form S-4 and all other relevant documents filed or that will be filed with the SEC by New Hut through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Hut 8 at info@hut8.io and of USBTC at info@usbitcoin.com.

No Offer or Solicitation

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

Media Advisory: Hut 8 to attend Annual Needham Technology & Media Conference in New York City

Posted on 12 May 20235 December 2023 by Sam Dias

TORONTO, May 12, 2023 – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, will be attending the Annual Needham Technology & Media Conference on May 17.

Who: Analysts and investors are invited to attend

What: 18^th Annual Needham Technology and Media Conference

When: May 17

Where: Intercontinental New York Times Square (300 W 44^th St. New York)

Sue Ennis, VP of Corporate Development, will be taking meetings on Wednesday, May 17. Analysts and investors can reach out via the contact information below.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two operational digital asset mining sites located in Southern Alberta, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With over 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and predominantly emission-free sources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Yamini Coen

Hut 8 Reports Operating and Financial Results for Q1 2023

Posted on 11 May 20235 December 2023 by Sam Dias

Quarterly revenue of $19.0 million including $4.5 million from the high performance computing business

9,133 self-mined Bitcoin held in custody on March 31

TORONTO, ON, May 11, 2023 – Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, and high performance computing infrastructure provider, is pleased to announce its financial results for the quarter ended March 31, 2023 (“Q1 2023”). All dollar figures are in Canadian Dollars (“CAD”), unless otherwise stated.

“In early 2023, we experienced a confluence of events: electrical issues at our Drumheller site caused equipment failures, while fluctuating energy prices and increased network difficulty affected our mining operations,” said Jaime Leverton, CEO of Hut 8. “We also reached an all-time operational high of 1.72 EH/s at our Medicine Hat facility and announced a merger of equals with USBTC, and since then have made progress on key regulatory files required to complete the transaction.”

“We continued to strategically manage our finances in Q1 while addressing challenges at the Drumheller site,” said Shenif Visram, CFO. “Although we continue to see good client demand in our high performance computing business, the issues on the mining side of the business reflect a decrease in revenue and Bitcoin mined, which the entire leadership and operations team is proactively working to resolve.”

“Leading up to the halving, we will continue to focus on strategically increasing our stack of Bitcoin and growing our HPC business including exploring opportunities in the growing Artificial Intelligence market,” said Jaime. “We expect that our proposed business combination with USBTC will increase our installed self-mining hashrate to 7.02 EH/s, enhance our geographic reach into new energy markets, and further diversify our lines of business with capex-light, scalable, fiat-based revenue streams, positively distinguishing us from pureplay digital asset miners, who post-halving, are likely to have more exposure to diminishing returns driven by an increasing global hashrate and additional competition from sovereign nations and well-funded new entrants.”

Q1 2023 HIGHLIGHTS

Revenue decreased by $34.3 million to $19.0 million during the quarter ended March 31, 2023 compared to $53.3 million during the quarter ended March 31, 2022 (“Q1 2022”).
The Company mined 475 Bitcoin in the quarter ended March 31, 2023, an approximately 50% decrease compared to the quarter ended March 31, 2022, primarily due to an increase in average Bitcoin network difficulty resulting in a decrease in Bitcoin mined, and ongoing electrical issues at the Company’s Drumheller facility which continued from the fourth quarter of 2022.
As previously reported, the Company encountered issues at the Drumheller site, primarily stemming from high energy input levels that have been causing miners to fail. This has materially reduced operations, which are currently at approximately 15% of our installed hash rate at the site. Remediation began in March and gained momentum in April as the team implemented new custom firmware across all miner models designed to lower the power supply’s maximum output voltage, ensuring our equipment operates within safe limits. We are actively increasing repair staff, adding an additional repair centre shift, and have procured new hardware to expedite repairs and accelerate the speed at which we bring miners back online, and expect to have complete restoration in 10 to 12 weeks. The electrical issues at the Drumheller site have been compounded by high energy rates which further increased curtailment at the site.
Hut 8’s high performance computing (“HPC”) operations generated $4.5 million of primarily monthly recurring revenue in Q1 2023 compared to $3.3 million in Q1 2022 when the Company acquired the HPC operations on January 31, 2022.
The Company’s installed hashrate was 2.6 EH/s (excluding the Company’s North Bay facility) as of March 31, 2023 compared to 2.5 EH/s as of December 31, 2022. 988 miners previously located at the Company’s North Bay facility were energized at its Medicine Hat facility in the last two weeks of the quarter ended March 31, 2023.

BITCOIN INVENTORY AND VALUE

As at March 31, 2023, the Company had a total self-mined, unencumbered, and custodied Bitcoin balance of 9,133 with a market value of $352.0 million. During the first quarter of 2023, 475 Bitcoin were mined and 428 Bitcoin were sold, for which the Company received proceeds of $14.5 million.

OPERATING AND FINANCIAL OVERVIEW

Revenue decreased by $34.3 million to $19.0 million for the quarter ended March 31, 2023, compared to $53.3 million for the quarter ended March 31, 2022. The Company’s digital asset mining operations mined 475 Bitcoin and generated $14.5 million of revenue, versus 942 Bitcoin mined and $49.3 million of revenue in the prior year period. The decrease in revenue from digital asset mining operations was due to the 41% decrease in the daily average closing Bitcoin price (approximately $30,600 for the current year quarter compared to approximately $52,300 in the prior year period), halt in the Company’s graphic processing units (“GPU”) mining activities due to the Ethereum network’s change in consensus mechanism from proof-of-work to proof-of-stake during the third quarter of 2022, and increase in Bitcoin average network difficulty of approximately 50% compared to prior year quarter. Additionally, the Company mined a lower quantity of Bitcoin due to the ongoing electrical issues and increased energy rates at the Company’s Drumheller facility. The Company’s high performance computing operations generated $4.5 million of primarily recurring revenue in the quarter compared to $3.3 million in the comparative quarter, which reflects two months of operations from the high performance computing, as the acquisition of the high performance computing operations closed on January 31, 2022.
Cost of revenue consists of site operating costs and depreciation and was $25.2 million for the first quarter of 2023 compared to $36.9 million in the first quarter of 2022. Site operating costs for the quarter ended March 31, 2023, were $14.4 million, of which $12.0 million were attributable to our mining operations and $2.4 million were attributable to our high performance computing operations. The average cost of mining each Bitcoin for the first quarter of 2023 was approximately $25,100, compared to approximately $18,000 per Bitcoin in the prior year for the same quarter. The increase was due to higher power consumption per Bitcoin mined, increased energy prices, and ongoing electrical issues at the Drumheller facility, which was partially offset by the Company’s decision to curtail and increased efficiencies in the miners deployed compared to prior year same quarter. Depreciation expense decreased to $10.9 million during the first quarter of 2023 compared to $18.4 million in the same quarter of 2022, primarily driven by the lower net book value of digital asset mining assets after the recognition of non-cash impairment charge during the fourth quarter of 2022 as part of annual impairment testing.
Net income was $108.5 million and net income per share was $0.49 for the three months ended March 31, 2023, compared to net income of $55.7 million and net income per share of $0.33 for the same period in 2022. The change was primarily driven by the $134.8 million non-cash revaluation gain on digital assets, $5.0 million gain on disposition of digital assets, partially offset by lower digital asset mining revenue, a non-cash revaluation loss on warrant liability, and a greater weighted average number of shares outstanding for earnings per share purposes under International Accounting Standards (“IAS”) 33.
Mining Profit(i) was $2.6 million in Q1 2023, compared to $32.9 million in Q1 2022. The change is mainly due to a lower average Bitcoin price, higher Bitcoin network difficulty, fewer Bitcoin mined, and lower digital asset mining revenue from the ongoing electrical issues noted at the Drumheller facility.
Adjusted EBITDA(i) was negative $3.7 million in Q1 2023, compared to $27.1 million in Q1 2022. Contributions from HPC operations were offset by lower margins in digital asset mining operations.

For more information, please refer to the Company’s management’s discussion & analysis (the “MD&A”) and the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023 and 2022. These documents are available on the Company’s website at hut8.io, under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.gov.

NON-IFRS MEASURES

This press release makes reference to certain measures that are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore not necessarily comparable to similar measures presented by other companies. The Company uses non-IFRS measures including “Mining Profit” and “Adjusted EBITDA” as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from Management’s perspective and should not be viewed as alternatives to, or replacements of, measures of operating results and liquidity presented in accordance with IFRS.

The following tables and definitions reconcile non-IFRS measures used by the Company to analyze the operational performance of Hut 8 to their nearest IFRS measure and should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023 and 2022.

Mining Profit

The following table reconciles gross (loss) profit to our non-IFRS measure, Mining Profit:

Adjusted EBITDA

“Adjusted EBITDA” represents EBITDA (net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization) adjusted to exclude non-cash share-based compensation, fair value gain or loss on revaluation of digital assets and warrants, non-recurring impairment charges or reversals of impairment, and costs associated with one-time or non-recurring transactions. Adjusted EBITDA is used to assess profitability without the impact of non-cash accounting policies, capital structure, taxation, and one-time or non-recurring transactions. This performance measure provides a consistent comparable metric for profitability of the Company across time periods.

The following table reconciles net income to our non-IFRS measure, Adjusted EBITDA:

CORPORATE UPDATES

On March 10, 2023, The Company announced that it received a no-action letter from the Canadian Commissioner of Competition, which confirmed that the Commissioner of Competition does not intend to challenge the Transaction before the Competition Tribunal.

On March 13, 2023, the Company announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the business combination had expired, which satisfied one of the conditions of the closing of the Transaction.

On April 27, 2023, the Company announced via press release that New Hut had filed an amendment to its Form S-4 Registration Statement (the “Amended Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”).

As disclosed in the Amended Registration Statement:

New Hut’s expected installed self-mining capacity has increased from the previously disclosed 5.6 EH/s to 7.02 EH/s at mining facilities in Medicine Hat and Drumheller in Alberta; Niagara Falls, New York; Kearney, Nebraska; and Granbury and King Mountain, Texas upon the close of the Transaction. The improvement is due to the energization of additional miners at USBTC’s sites.
The 1.7 EH/s installed self-mining capacity at the King Mountain, Texas site is owned by the King Mountain Joint Venture in which USBTC has a 50% membership interest alongside a leading energy partner.
On April 7, 2023, USBTC entered into a settlement with the City of Niagara Falls which concluded all claims related to the ongoing litigation with the City and terminated the temporary restraining order against USBTC. USBTC was required to pay the City of Niagara Falls a $100,000 compliance fee and contribute $180,000 to the city’s attorney’s fees. USBTC is currently working with City officials to confirm safety procedures prior to resuming mining activity.

With the next halving event less than a year away, the business combination of Hut 8 and USBTC is particularly strategic as it will establish New Hut with geographic diversity across its self-mining business, which will include differentiated energy sources in a variety of markets, and improve efficiencies at the miner level by using proprietary, purpose-built software that can identify and mitigate machine and energy price issues in real-time. Notably, it will further diversify fiat revenue lines of business by adding USBTC’s 220 MW hosting and 680 MW managed infrastructure operations businesses to Hut 8’s existing HPC and repair centre operations. Completion of the Transaction is subject to obtaining the remaining regulatory approvals, shareholder approval, court approval, and other customary closing conditions. Hut 8 expects the Transaction to close in late second quarter, or early third quarter, of 2023.

CONFERENCE CALL

Hut 8 Mining Q1 2023 conference call will commence at 10 a.m. ET, today, May 11, 2023.

To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/44vWTFC to receive an instant, automated call back that will place you in the conference
Those joining via operator should dial in 5-10 minutes early to: 1-888-664-6392 (toll-free, North America) and use access code: 51509137#

Analyst Coverage of Hut 8 Mining:

A full list of Hut 8 Mining analyst coverage can be found here: http://localhost:10005/investors/

About Hut 8

FORWARD-LOOKING INFORMATION

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, such forward-looking information included in this press release include, but are not limited to, statements with respect to the following: the Company’s position and ability to seize opportunities in the digital asset industry; the Company’s ability to advance the HODL strategy in the long-term; the Company’s growth strategy; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the Bitcoin industry generally; projected hash rate, expenses and profitability; the ability of the Company to react to digital asset price volatility; fluctuating power and energy costs; the ability of the Company to navigate increased network difficulty; the remediation of the operational issues at the Company’s Drumheller facility, and the timing thereof; the expected outcomes of the Transaction, including New Hut’s assets and financial position; the ability of Hut 8 and USBTC to complete the Transaction on the terms described herein, or at all, including, receipt of required regulatory approvals, shareholder approvals, court approvals, stock exchange approvals and satisfaction of other closing customary conditions; the expected timing of the closing of the Transaction; the expected synergies related to the Transaction in respect of strategy, operations and other matters; projections related to expansion; expectations related to New Hut’s hashrate and self-mining capacity; expected ESG efforts and commitments; and the ability of New Hut to execute on future opportunities, among others.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic (or a material escalation thereof); climate change; currency risk, lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; inflationary pressures and the rising cost of capital; changes in network and infrastructure; system interruption; changes in leasing arrangements; counterparty risk; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to the Company’s mining sites; the ability to implement business plans, forecasts, and other expectations; the ability to identify and realize additional opportunities and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 9, 2023, and Hut 8’s other continuous disclosure documents which are available on Company’s website at hut8.io, under the Company’s SEDAR profile at www.sedar.com and under the Company’s EDGAR profile at www.sec.gov.

ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT

In connection with the transaction, that, if completed, would result in New Hut becoming a new public company, New Hut has filed a registration statement on Form S-4 (the “Form S-4”) with the U.S. Securities and Exchange Commission’s (“SEC”). USBTC and Hut 8 urge investors, shareholders, and other interested persons to read the Form S-4, including any amendments thereto, the Hut 8 meeting circular, as well as other documents filed or to be filed with the SEC and documents to be filed with Canadian securities regulatory authorities in connection with the transaction, as these materials do and will contain important information about USBTC, Hut 8, New Hut and the transaction. New Hut also has, and will, file other documents regarding the transaction with the SEC. This press release is not a substitute for the Form S-4 or any other documents that may be sent to Hut 8’s shareholders or USBTC’s stockholders in connection with the transaction. Investors and security holders are or will be able to obtain free copies of the Form S-4 and all other relevant documents filed or that will be filed with the SEC by New Hut through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Hut 8 at info@hut8.io and of USBTC at info@usbitcoin.com.

NO OFFER OR SOLICITATION

INVESTOR CONTACT:

Sue Ennis

MEDIA CONTACT:

Yamini Coen

(i) Non-IFRS measure – see “Non-IFRS Measures” section below. Certain comparative figures have been restated where necessary to conform with current period presentation.

Hut 8 Mining Production and Operations Update for April 2023

Posted on 9 May 20235 December 2023 by Sam Dias

Remediation progressing at Drumheller, Alberta site

At 9,265 BTC, Hut 8 continues to hold the largest amount of self-mined Bitcoin in reserve of any publicly traded company

132 Bitcoin mined in April

TORONTO, May 8, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 132 Bitcoin in the period ending April 30, 2023.

Production highlights for April 2023:

132 Bitcoin were generated, resulting in an average production rate of approximately 4.4 Bitcoin per day.
Total balance of unencumbered Bitcoin held in reserve as of April 30 is 9,265.
Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month.
Hut 8 produced 50.77 BTC/EH in April.
No Bitcoin were sold during the month.

Operational highlights:

Remediation at our Drumheller, Alberta site progressed throughout the month:
- High energy input levels at the site have been causing equipment failures that have materially reduced operations, which are currently at approximately 15% of our installed hashrate at the site.
- In response, we began implementing firmware across all miner models designed to lower the power supply’s maximum output voltage, ensuring our equipment operates within safe limits.
- Our team is actively engaged in repairing damaged equipment and restoring the hashrate to its optimal level.
- We are closely monitoring the situation and will continue to make the necessary adjustments as needed to restore, safeguard, and optimize our equipment.
- We are actively increasing repair staff, adding an additional repair centre shift, and have procured new hardware to expedite repairs and accelerate the speed at which we bring miners back online.
- We expect to have the site restored in 10-12 weeks.
Spikes in energy rates have created additional headwinds at Drumheller.
Our team is actively pursuing options to operationalize the bulk of the approximately 7,000 miners that were removed from our North Bay site.

“We are very aware of the impact that the issues at Drumheller are having on the broader business: they are complex and challenging, but we have made meaningful progress and have a roadmap to remediation,” said Jaime Leverton, CEO of Hut 8. “We are laser focused on closing the proposed transaction with US Bitcoin Corp., which will both expand our overall production to 7.02 EH/s and provide access to additional energy markets.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two operational digital asset mining sites located in Southern Alberta, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With over 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. In addition, any statements in this press release that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information and include, among others, statements regarding: Bitcoin network dynamics; the Company’s ability to advance its longstanding HODL strategy; the Company’s ability to produce additional Bitcoin and maintain existing rates of productivity at all sites; the Company’s ability to deploy additional miners; the Company’s ability to continue mining digital assets efficiently; the sale of the Company’s Bitcoin production and the proposed use of proceeds from such sale; the Company’s plans with respect to the energization of the miners that were removed from the North Bay facility; the Company’s expected recurring revenue and growth rate from its high performance computing business; the remediation of the operational issues at the Company’s Drumheller facility, and the timing thereof; the Company’s expectations with respect to the closing of the transaction with US Bitcoin Corp.; and the Company’s ability to successfully navigate the current market.

These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Media advisory: Hut 8 to Release Q1 2023 Results on May 11

Posted on 8 May 20235 December 2023 by Sam Dias

TORONTO, May 5, 2023 – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, will be releasing results for the quarter ended March 31, 2023 via a conference call on May 11, 2023.

Who: Analysts, media, and investors are invited to attend.

What: Hut 8 executives will review the company’s first quarter financial results and comment on recent corporate developments.

When: Results will be shared via media release and on the Company’s website at Investors by 10 a.m. ET on May 11, 2023. The conference call and webinar will begin at 10 a.m. ET.

Where: To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/44vWTFC to receive an instant, automated call back that will place you in the conference.

Those joining via operator should dial in 5-10 minutes early to: 1-888-664-6392 (toll-free, North America) and use access code: 51509137#.

About Hut 8

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Yamini Coen

Hut 8 Provides Update on Business Combination with USBTC

Posted on 27 April 20235 December 2023 by Sam Dias

TORONTO, April 27, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, continues to make progress on the proposed business combination pursuant to which Hut 8 and U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) will combine in an all-stock merger of equals (the “Transaction”). The combined company will be named “Hut 8 Corp.” (“New Hut”) and will be a U.S.-domiciled entity. The Transaction is expected to establish New Hut as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry leading environmental, social, and governance (ESG) practices.

New Hut has filed an amendment to its Form S-4 Registration Statement (the “Amended Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”). As disclosed in the Amended Registration Statement:

New Hut’s expected installed self-mining capacity has increased from the previously disclosed 5.6 EH/s to 7.02 EH/s at mining facilities in Medicine Hat and Drumheller in Alberta; Niagara Falls, New York; Kearney, Nebraska; and Granbury and King Mountain, Texas upon the close of the Transaction. The improvement is due to the energization of additional miners at USBTC’s sites.
- The 1.7 EH/s installed self-mining capacity at the King Mountain, Texas site is owned by the King Mountain Joint Venture in which USBTC has a 50% membership interest alongside a leading energy partner.
On April 7, 2023, USBTC entered into a settlement with the City of Niagara Falls which concluded all claims related to the ongoing litigation with the City and terminated the temporary restraining order against USBTC. USBTC was required to pay the City of Niagara Falls a $100,000 compliance fee and contribute $180,000 to the city’s attorney’s fees.
- USBTC is currently working with City officials to confirm safety procedures prior to resuming mining activity.

“Since announcing the transaction, we have made measurable progress on key files that will positively position New Hut to be very competitive in the market with 7.02 EH/s of self-mining capacity,” said Jaime Leverton, CEO of Hut 8. “In addition, we will have flexibility for growth in new fiat revenue lines of business including hosting and managed infrastructure operations, allowing us to amplify our diversification strategy, which will ultimately prove to be prescient well beyond the next halving.”

Completion of the Transaction remains subject to the remaining regulatory approvals, shareholder approval, court approval, and other customary closing conditions of the transaction.

About Hut 8

Cautionary Note Regarding Forward–Looking Information

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the ability to obtain requisite shareholder approvals and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms or at all; the ability to obtain necessary stock exchange, regulatory, governmental or other approvals in the time assumed or at all; the anticipated timeline for the completion of the Transaction; the ability to realize the anticipated benefits of the Transaction or implementing the business plan for New Hut, including as a result of a delay in completing the Transaction or difficulty in integrating the businesses of the companies involved (including the retention of key employees); the ability to realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on mining activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic; climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to New Hut’s mining sites. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 9, 2023 and Hut 8’s other continuous disclosure documents which are available on the Company’s profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov.

These risks are not intended to represent a complete list of the factors that could affect Hut 8, USBTC, or New Hut; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and New Hut’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation.

Additional Information about the Transaction and Where to Find It

In connection with the Transaction, that, if completed, would result in New Hut becoming a new public company, New Hut has filed a registration statement on Form S-4 (the “Form S-4”) with the SEC. USBTC and Hut 8 urge investors, shareholders, and other interested persons to read the Form S-4, including any amendments thereto, the Hut meeting circular, as well as other documents to be filed with the SEC and documents to be filed with Canadian securities regulatory authorities in connection with the Transaction, as these materials will contain important information about USBTC, Hut 8, New Hut and the Transaction. New Hut also has, and will, file other documents regarding the Transaction with the SEC. This press release is not a substitute for the Form S-4 or any other documents that may be sent to Hut’s shareholders or USBTC’s stockholders in connection with the Transaction. Investors and security holders will be able to obtain free copies of the Form S-4 and all other relevant documents filed or that will be filed with the SEC by New Hut through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Hut 8 at info@hut8.io and of USBTC at info@usbitcoin.com.

No Offer or Solicitation

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Hut 8 Mining Production and Operations Update for March 2023

Posted on 5 April 20235 December 2023 by Sam Dias

131 Bitcoin mined in March

At 9,133 BTC, Hut 8 continues to hold the largest amount of self-mined Bitcoin in reserve of any publicly-traded company

TORONTO, April 5, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 131 Bitcoin in the period ending March 31, 2023.

Production highlights for March 2023:

131 Bitcoin were generated, resulting in an average production rate of approximately 4.2 Bitcoin per day.
240 Bitcoin – all of those produced in February, and part of March – were sold in March 2023.
Total Bitcoin balance held in reserve as of March 31 is 9,133.
Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month.
Hut 8 produced 50.38 BTC/EH in March.
The difficulty level for mining Bitcoin increased by 10.67% month over month making it more difficult and expensive to mine new blocks and highlighting the growing demand and strength of the Bitcoin network.

Operational highlights:

We’ve begun remediation testing at our Drumheller, Alberta site, which continues to be a high priority.
We hit an all-time operating high of 1.72 EH/s at our Medicine Hat site after energizing approximately 1,000 additional miners transferred from our North Bay site.

“While we met key operational milestones in Medicine Hat in March, we continue to be laser-focused on two things,” said Jaime Leverton, CEO of Hut 8. “The entire management team is committed to both remediating the challenges at our Drumheller site, and closing the transaction with USBTC, which remains on track.”

About Hut 8

Cautionary Note Regarding Forward–Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. In addition, any statements in this press release that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information and include, among others, statements regarding: Bitcoin network dynamics; the Company’s ability to advance its longstanding HODL strategy; the Company’s ability to produce additional Bitcoin and maintain existing rates of productivity at all sites; the Company’s ability to deploy additional miners; the Company’s ability to continue mining digital assets efficiently; the sale of the Company’s Bitcoin production and the proposed use of proceeds from such sale; the Company’s plans with respect to the energization of the miners that were removed from the North Bay facility; the Company’s expected recurring revenue and growth rate from its high performance computing business; the remediation of the operational issues at the Company’s Drumheller facility; the Company’s expectations with respect to the closing of the transaction with US Bitcoin Corp.; and the Company’s ability to successfully navigate the current market.

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Hut 8 provides update on North Bay Facility

Posted on 28 March 20235 December 2023 by Sam Dias

This news release constitutes a “designated news release” for purposes of the Company’s prospectus supplement dated August 17, 2022 to its short form base shelf prospectus dated August 5, 2022.

TORONTO, March 28, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or the “Company”), announces that it has served and filed an amended statement of claim in the Ontario Superior Court of Justice (the “Amended Claim”) against Validus Power Corp. and its subsidiary, Bay Power Corp. (collectively, “Validus”), a third-party supplier of energy to the Company’s mining facility in North Bay, Ontario.

The Amended Claim relates to the Company’s ongoing and previously disclosed dispute with Validus in respect of Validus’ failure to meet its contractual obligations under the power purchase agreement it entered into with the Company. In addition to the claims set out in the original statement of claim, the Amended Claim, among other things, adds claims involving the associated lease between the Company and Validus at the Company’s mining facility in North Bay, Ontario to include a claim for unlawful termination by Validus of the aforementioned lease.

The Company does not intend to make additional comments on this subject unless otherwise determined to be appropriate.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two operational digital asset mining sites located in Southern Alberta, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With over 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and predominantly emission-free sources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, the COVID19 pandemic, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, including risks related to the legal proceedings with Validus and regarding the Amended Claim and any future legal proceedings with respect to the Company’s North Bay facility, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, failure to achieve intended benefits of power purchase agreements, potential for interrupted delivery, or suspension of the delivery, of energy to the Company’s mining sites, and other risks related to the digital asset and data centre business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 9, 2023, and Hut 8’s other continuous disclosure documents which are available on the Company’s profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and on the EDGAR section of the U.S. Securities and Exchange Commission’s website at www.sec.gov.

Investor contact:

Sue Ennis

Media contact:

Yamini Coen

Yamini.coen@hut8.io

Hut 8 Provides Update on Business Combination with USBTC

Posted on 13 March 20235 December 2023 by Sam Dias

TORONTO, ON, March 13, 2023 — Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, and high performance computing infrastructure provider, is pleased to announce the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) with respect to the Company’s proposed business combination pursuant to which Hut 8 and U.S. Data Mining Group, Inc. dba US Bitcoin Corp. (“USBTC”) will combine in an all-stock merger of equals (the “Transaction”). The expiration of the waiting period under the HSR Act satisfies one of the conditions to the closing of the Transaction.

Completion of the Transaction remains subject to the remaining regulatory approvals, shareholder approval, court approval, and other customary closing conditions of the Transaction.

About Hut 8

Cautionary Note Regarding Forward-Looking Information

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. Material assumptions include: assumptions regarding the level of demand and financial performance of the digital asset industry; the ability to obtain requisite approvals (including shareholder, stock exchange, regulatory, and court approvals) and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms or at all and the anticipated timeline for the completion of the Transaction. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the ability to obtain requisite shareholder approvals and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms or at all; the ability to obtain necessary stock exchange, regulatory, governmental or other approvals in the time assumed or at all; the anticipated timeline for the completion of the Transaction; the ability to realize the anticipated benefits of the Transaction or implementing the business plan for Hut 8 Corp. (“New Hut”), including as a result of a delay in completing the Transaction or difficulty in integrating the businesses of the companies involved (including the retention of key employees); the ability to realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on mining activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; the outcome of any litigation proceedings in respect of USBTC’s legal dispute with the City of Niagara Falls, New York; security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic; climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery of energy to New Hut’s mining sites. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 9, 2023, in the “Risks and Uncertainties” section of the Company’s Management’s Discussion and Analysis for the year ended December 31, 2022 and Hut 8’s other continuous disclosure documents which are available on Company’s website at www.hut8.io, under the Company’s SEDAR profile at www.sedar.com and under the Company’s EDGAR profile at www.sec.gov.

These factors are not intended to represent a complete list of the factors that could affect Hut 8 or its business; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation.

Additional Information About the Transaction and Where to Find It

In connection with the Transaction, that, if completed, would result in New Hut becoming a new public company, New Hut has filed a registration statement on Form S-4 (the “Form S-4”) with the U.S. Securities Exchange Commission (the “SEC”). USBTC and Hut 8 urge investors, shareholders, and other interested persons to read the Form S-4, including any amendments thereto, the Hut 8 meeting circular, as well as other documents filed or to be filed with the SEC and documents to be filed with Canadian securities regulatory authorities in connection with the Transaction, as these materials do and will contain important information about USBTC, Hut 8, New Hut and the Transaction. New Hut also has, and will, file other documents regarding the Transaction with the SEC. This press release is not a substitute for the Form S-4 or any other documents that may be sent to Hut 8’s shareholders or USBTC’s stockholders in connection with the Transaction. Investors and security holders are or will be able to obtain free copies of the Form S-4 and all other relevant documents filed or that will be filed with the SEC by New Hut through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Hut 8 at info@hut8.io and of USBTC at info@usbitcoin.com.

No Offer or Solicitation

Investor contact:

Sue Ennis

Media contact:

Yamini Coen

Hut 8 Provides Update on Business Combination with USBTC

Posted on 10 March 20235 December 2023 by Sam Dias

TORONTO, ON, March 10, 2023 — Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, and high performance computing infrastructure provider, is pleased to announce that it has received a no‑action letter from the Competition Bureau of Canada (“Competition Bureau”) in respect of the Company’s previously announced proposed business combination pursuant to which Hut 8 and U.S. Data Mining Group, Inc. dba US Bitcoin Corp. (“USBTC”) will combine in an all-stock merger of equals (the “Transaction”). The no-action letter confirms that the Competition Bureau does not, at this time, intend to challenge the Transaction before the Competition Tribunal under the merger provisions under the Competition Act.

“As we continue to work towards closing the proposed transaction with USBTC, the issuance of this no-action letter is a positive development as it satisfies the Competition Act Approval condition in the business combination agreement. We appreciate the Competition Bureau’s professionalism throughout its review process,” said Jamie Leverton, CEO of Hut 8.

Completion of the Transaction remains subject to the remaining regulatory approvals, shareholder approval, court approval, and other customary closing conditions of the Transaction.

About Hut 8

FORWARD-LOOKING INFORMATION

Investor contact:

Sue Ennis

Media contact:

Yamini Coen

Hut 8 Reports Operating and Financial Results for 2022

Posted on 9 March 20235 December 2023 by Sam Dias

Strong annual revenue of $150.7 million including $16.9 million from the high performance computing business

Bitcoin holdings increased 64.7% in 2022 to 9,086 at year end

Achieved Adjusted EBITDA of $32.0 million in 2022

TORONTO, ON, March 9, 2023 — Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, and high performance computing infrastructure provider, is pleased to announce its financial results for the year and quarter ended December 31, 2022. All dollar figures are in Canadian Dollars (“CAD”), unless otherwise stated.

“While 2022 was a challenging time for the entire industry, we fared well thanks to our team’s commitment to operational excellence, our diversified lines of business, and our strong growth profile,” said Jaime Leverton, CEO. “As we look ahead, we will continue to uphold these operating principles as we work to close our business combination with USBTC and begin operating as a US-domiciled, digital asset mining, hosting, managed infrastructure operations, and high performance computing organization.”

“We continued to fastidiously manage our finances through Q4, which allowed us to navigate sustained Bitcoin price suppression, fluctuating power prices, and increased network difficulty,” said Shenif Visram, CFO. “As a result, we increased our mining production by more than 28% year over year, and increased our fiat revenues by $16.9 million with the addition of our high performance computing business.”

2022 HIGHLIGHTS

Revenue decreased by $23.1 million to $150.7 million during the year ended December 31, 2022 compared to $173.8 million during the year ended December 31, 2021.
The Company mined 3,568 Bitcoin in 2022, a 28.1% increase compared to 2021 due to an increase in hashrate from the expansion of the Company’s fleet of miners and mining activities.
Hut 8’s high performance computing operations generated $16.9 million of revenue in 2022, the majority of which is monthly recurring revenue.
The Company installed an aggregate of 21,455 new MicroBT M30S, M30S+, M30S++ and M31S+ miners at its three mining sites during the year ended December 31, 2022. The installation of these miners brought Hut 8’s installed hashrate to 2.5 EH/s (excluding the Company’s North Bay facility and GPU mining) as of December 31, 2022, an increase of 25.0% in hashrate compared to December 31, 2021. The Drumheller facility experienced diminished production as a result of electrical issues.

HASHRATE UPDATE

Hut 8 currently has an installed hashrate of approximately 2.5 EH/s, which excludes the Company’s North Bay facility that is not operational as of March 9, 2023.

BITCOIN INVENTORY AND VALUE

As at December 31, 2022, the Company had a total self-mined, unencumbered and held in custody Bitcoin balance of 9,086 with a market value of $203.6 million. During the fourth quarter of 2022, 100% of self-mined Bitcoin was deposited into custody.

Revenue for the year-ended December 31, 2022 was $150.7 million compared to $173.8 million in the prior year. The decrease was primarily driven by the Company’s digital asset mining operations, where the Company mined 3,568 Bitcoin and generated $133.0 million of digital asset mining revenue, versus mining 2,786 Bitcoin and generating $165.4 million of digital asset mining revenue in the prior year. The Bitcoin price decrease during 2022 offset the impact on revenue of mining an increased number of Bitcoin compared to the prior year. The increase in the number of Bitcoin mined is due to the increase in Hut 8’s average hashrate compared to the prior year. This was partially offset by electrical issues at the Company’s Drumheller facility which impacted Bitcoin production, digital asset mining curtailments at the Company’s Drumheller facility, and the suspension of mining operations at the Company’s North Bay facility during the fourth quarter of 2022. The Bitcoin price decrease during 2022 resulted in average revenue per Bitcoin mined of approximately $37,300 in 2022 compared to average revenue per Bitcoin mined of approximately $59,400 in 2021. The Company’s hosting services contributed $0.8 million of revenue during the year compared to $8.4 million in the prior year. Hosting services revenue decreased as Hut 8 acquired the remaining hosted digital asset miners during 2022 to allocate toward self-mining operations. The Company’s newly-acquired high performance computing operations generated $16.9 million of primarily recurring revenue in 2022.
Cost of revenue consists of site operating costs and depreciation and was $175.6 million for the year ended December 31, 2022, compared to $85.0 million in the prior year. Site operations costs for 2022 were $81.8 million, $8.4 million of which relates to our high performance computing (“HPC”) operations. The average site operating costs of mining each Bitcoin for 2022 was approximately $20,600, compared to approximately $22,100 in the prior year period, with the decrease primarily due to more efficient miners deployed at the Company’s mining facilities, partially offset by higher energy prices in the year and increased network difficulty as compared to the prior year. Depreciation expense increased to $93.9 million during 2022 compared to $23.3 million in 2021, driven by the increased number and overall cost of miners deployed during the year along with $5.1 million of additional depreciation from the newly acquired HPC operations. Notably, Hut 8 employs a two year depreciation schedule for its miners, which is a conservative timeline by industry standards.
For the year ended December 31, 2022, the Company identified indicators of impairment for its digital asset mining cash generating units (“CGUs”) and tested its digital asset mining CGUs for impairment. Management has determined the recoverable amount as the Value in Use (“VIU”) for the three digital asset mining CGUs based on geographical area and distinct cashflows: Medicine Hat, Drumheller, and North Bay. These CGUs include mining infrastructure and mining server plant and equipment. For the year ended December 31, 2022, the Company assessed the VIU of the digital asset mining CGUs. Due to depressed digital asset mining economics, specifically decline in the price of Bitcoin throughout periods during 2022, the Company recorded an impairment charge on its digital asset mining CGUs. The difference between the pre-impairment carrying value and recoverable amount of the Company’s digital asset mining CGUs is $98.6 million.
For the year ended December 31, 2022, the Company identified indicators of impairment for its graphics processing unit (“GPU”) mining group of assets and tested its GPU mining group of assets for impairment. Management has determined the recoverable amount of GPU mining group of assets to be its fair value less costs of disposal (“FVLCD”). Due to the Ethereum Merge in 2022, where the Ethereum network changed its consensus mechanism from proof-of-work to proof-of-stake, the Company was unable to mine the Ethereum network using the GPU mining group of assets. The Company was unsuccessful in finding an alternative digital asset to mine with profitable mining economics using the GPU mining group of assets. As a result, the Company recorded an impairment charge on its GPU mining group of assets. The difference between the pre-impairment carrying value and the recoverable amount of the Company’s GPU mining group of assets is $15.2 million.
Net loss for 2022 was $242.8 million and net loss per share was $1.29, compared to net loss of $72.7 million and net loss per share of $0.54 in the prior year. The change reflects the lower revenue from digital asset mining operations, higher cost of revenue, $113.9 million of impairment on digital asset mining CGUs and GPU mining group of assets, and loss on revaluation of digital assets recorded to net loss of $134.8 million due to the Bitcoin price decrease during 2022.
Mining Profit(i) was $60.4 million in 2022, compared to $108.1 million in 2021. The change is mainly due to a lower average Bitcoin price and increased average power costs, which were partially offset by the impact to revenue from the higher number of Bitcoin mined.
Adjusted EBITDA(i) was $32.0 million, compared to $96.6 million in 2021. Contributions from high performance computing operations were offset by compressed mining margins.

For more information, please refer to the Company’s management’s discussion & analysis (the “MD&A”) and the Company’s consolidated financial statements for the years ended December 31, 2022 and 2021. These documents are available on the Company’s website at hut8.io, under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.gov.

NON-IFRS MEASURES

The following tables and definitions reconcile non-IFRS measures used by the Company to analyze the operational performance of Hut 8, to their nearest IFRS measure and should be read in conjunction with the consolidated financial statements for the years ended December 31, 2022 and 2021.

Mining Profit

The following table reconciles gross profit (loss) to our non-IFRS measure, Mining Profit:

Adjusted EBITDA

“Adjusted EBITDA” represents EBITDA (net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization) adjusted to exclude non-cash share-based compensation, fair value gain or loss on revaluation of digital assets and warrants, non-recurring impairment charges or reversals of impairment, and costs associated with one-time or non-recurring transactions. Adjusted EBITDA is used to assess profitability without the impact of non-cash accounting policies, capital structure, taxation, and one-time or non-recurring transactions. This performance measure provides a consistent comparable metric for profitability of the Company across time periods.

The following table reconciles net (loss) income to our non-IFRS measure, Adjusted EBITDA:

CORPORATE UPDATES

On February 7, 2023, Hut 8 Mining Corp. and U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”), builder and strategic operator of four Bitcoin mining centres across the United States, announced that each of their boards of directors had unanimously approved a definitive business combination agreement under which the companies will combine in an all-stock merger of equals (the “Transaction”). The combined company will be named “Hut 8 Corp.” (“New Hut”) and will be a U.S.-domiciled entity. The Transaction is expected to establish New Hut as a large scale, publicly-traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading best practices in environmental, social, and governance (“ESG”).

New Hut will have access to approximately 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations.

It will have 5.6 EH/s of installed self-mining capacity and 244 MW of total energy available at five sites with current self-mining operations: Medicine Hat, AB; Drumheller, AB; Niagara Falls, NY; Granbury, TX; and King Mountain, TX. The 1.7 EH/s installed self-mining production at the King Mountain, TX site is owned by the King Mountain Joint Venture in which USBTC has a 50% membership interest alongside a leading energy partner (the “King Mountain JV”). USBTC continues to address a legal dispute with the City of Niagara Falls, NY over operations at the site in the same city. While operations continue uninterrupted, the team has a contingency plan in place that it will pursue should a resolution not be met.
New Hut will manage 220 MW of hosting infrastructure at its King Mountain, TX site, powered by a mix of sources including wind and nuclear, supporting multiple clients, including some of the industry’s largest miners. Hosting is owned by the King Mountain JV.
New Hut will manage 680 MW of infrastructure operations powered by energy from a mix of sources including renewable and zero-emission in Kearney, NB and Granbury and King Mountain, TX. This unique, leading-edge service offering gives Bitcoin mine site owners the opportunity to have USBTC’s professionals manage all day-to-day operations, hosting, site management, and maintenance using purpose-built site management software.
Notably, the USBTC team brings significant leadership in energy origination, development, demand response, hedging, grid stabilization, and analytics to New Hut, significantly enhancing New Hut’s ability to better plan around stable and predictable energy usage and mitigate fluctuating prices across markets.

In addition, New Hut is committed to supporting and growing the HPC business, which continues to be a cornerstone of New Hut’s diversified strategy, generating monthly recurring revenue from approximately 370 North American customers.

CONFERENCE CALL

Hut 8 Mining Q4 2022 conference call will commence at 10:00 a.m. ET, today, March 9, 2023.

To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/3YEOkEJ to receive an instant, automated call back that will place you in the conference
Those joining via operator should dial in 5-10 minutes early to: 1-888-664-6392 (toll-free, North America) and use access code: 42748613#

Analyst Coverage of Hut 8 Mining:

A full list of Hut 8 Mining analyst coverage can be found here: http://localhost:10005/investors/

About Hut 8

FORWARD-LOOKING INFORMATION

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, such forward-looking information included in this press release include, but are not limited to, statements with respect to the following: the Company’s position and ability to seize opportunities in the digital asset industry; the Company’s ability to advance the HODL strategy in the long-term; the Company’s growth strategy; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the Bitcoin industry generally; projected hash rate, expenses and profitability; the ability of the Company to react to digital asset price volatility; fluctuating power and energy costs; the ability of the Company to navigate increased network difficulty; the expected outcomes of the Transaction, including New Hut’s assets and financial position; the ability of Hut 8 and USBTC to complete the Transaction on the terms described herein, or at all, including, receipt of required regulatory approvals, shareholder approvals, court approvals, stock exchange approvals and satisfaction of other closing customary conditions; the expected synergies related to the Transaction in respect of strategy, operations and other matters; projections related to expansion; expectations related to New Hut’s hashrate and self-mining capacity; expected ESG efforts and commitments; and the ability of New Hut to execute on future opportunities, among others.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic (or a material escalation thereof); climate change; currency risk, lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; counterparty risk; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to the Company’s mining sites; the ability to implement business plans, forecasts, and other expectations; the ability to identify and realize additional opportunities and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 9, 2023, and Hut 8’s other continuous disclosure documents which are available on Company’s website at hut8.io, under the Company’s SEDAR profile at www.sedar.com and under the Company’s EDGAR profile at www.sec.gov.

Investor contact:

Sue Ennis

Media contact:

Yamini Coen

(i) Non-IFRS measure – see “Non-IFRS Measures” section below. Certain comparative figures have been restated where necessary to conform with current period presentation.

Hut 8 Mining Production and Operations Update for February 2023

Posted on 7 March 20235 December 2023 by Sam Dias

156 Bitcoin mined in February

At 9,242 BTC, Hut 8 continues to hold the largest amount of self-mined Bitcoin in reserve of any publicly-traded company

TORONTO, March 7, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 156 Bitcoin in the period ending February 28, 2023.

Production highlights for February 2023:

156 Bitcoin were generated, resulting in an average production rate of approximately 5.6 Bitcoin per day.
January 2023 production of 188 bitcoin was sold in February 2023.
Total Bitcoin balance held in reserve as of February 28 is 9,242, and further to our announcement on February 7, 2023, we expect to sell our February Bitcoin production to fund operating costs.
Installed ASIC hashrate capacity at our Alberta facilities was 2.5 EH/s at the end of the month.
Hut 8 produced 62.4 BTC/EH in February.

Operational highlights:

We are currently investigating electrical issues at our Drumheller, Alberta site, which have reduced production levels.
Miners and electrical equipment have been removed from the North Bay, Ontario site. Miners were moved to Medicine Hat, Alberta and electrical equipment were moved to a third-party facility, pending relocation.
We are assessing energization options for the approximately 7,000 miners that were relocated from North Bay, which represent approximately 680 PH/s of capacity.

“This month we used a portion of our stack to cover operating expenses rather than seeking other financing options with less attractive terms,” said Jaime Leverton, CEO. “We continue to hold the largest self-mined stack of any public company in reserve and are actively working toward closing our transaction with US Bitcoin Corp., as previously discussed, in the second quarter.”

About Hut 8

Cautionary Note Regarding Forward–Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. In addition, any statements in this press release that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information and include, among others, statements regarding: Bitcoin network dynamics; the Company’s ability to advance its longstanding HODL strategy; the Company’s ability to produce additional Bitcoin and maintain existing rates of productivity at all sites; the Company’s ability to deploy additional miners; the Company’s ability to continue mining digital assets efficiently; the sale of the Company’s February 2023 Bitcoin production and the proposed use of proceeds from such sale; the Company’s plans with respect to the energization of the miners that were removed from the North Bay facility, the Company’s expected recurring revenue and growth rate from its high performance computing business; the Company’s expectations with respect to the closing of the transaction with US Bitcoin Corp.; and the Company’s ability to successfully navigate the current market.

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Media advisory: Hut 8 to Release 2022 Financial Results March 9

Posted on 6 March 20235 December 2023 by Sam Dias

TORONTO, March 6, 2023 — Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, will be releasing results for the fiscal year and quarter ended December 31, 2022 via a conference call on March 9, 2023.

Who: Analysts, media, and investors are invited to attend.

What: Hut 8 executives will review the company’s 2022 financial results and comment on recent corporate developments.

When: Results will be shared via media release and on the Company’s website at Investors by 9:30 a.m. ET on March 9, 2023. The conference call and webinar will begin at 10 a.m. ET.

Where: Those joining via telephone should dial in 10 minutes early.

To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/3YEOkEJ to receive an instant, automated call back that will place you in the conference
Those joining via operator should dial in 5-10 minutes early to: 1-888-664-6392 (toll-free, North America) and use access code: 42748613#

About Hut 8

Hut 8 is a large innovation-focused digital asset miner, led by a team of business-building technologists, bullish on Bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has high capacity rate and large inventory of unencumbered, self-mined Bitcoin. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

revolution to create value and positive impacts for its shareholders and generations to come.

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Hut 8 Mining Production and Operations Update for January 2023

Posted on 13 February 20235 December 2023 by Sam Dias

188 Bitcoin mined in January

Held the largest amount of self-mined Bitcoin in reserve on January 31 of any publicly-traded company

TORONTO, February 13, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 188 Bitcoin in the period ending January 31, 2023.

Production highlights for January 2023:

188 Bitcoin were generated, resulting in an average production rate of approximately 6.1 Bitcoin per day.
Total Bitcoin balance held in reserve as of January 31 is 9,274, and further to our announcement on February 7, 2023, we expect to sell our January Bitcoin production to fund operating costs.
Installed ASIC hashrate capacity at our Alberta facilities was 2.5 EH/s at the end of the month.
Hut 8 produced 75.2 BTC/EH in January.

Operational highlights:

On February 7, 2023, Hut 8 announced a merger of equals with U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) which is expected to establish the combined company as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading best practices in ESG.

“We have been intentional and strategic in pursuing our HODL strategy: by building a large, unencumbered stack, we have afforded ourselves the optionality to strategically use a portion of it to cover operating expenses rather than having to seek other financing options with less attractive terms,” said Jaime Leverton, CEO. “I am confident that selling production while we focus on closing the merger with USBTC is the right approach, as we expect to create a strong self-mining, hosting, managed infrastructure operations, and HPC organization in the long term.”

Other Company Updates:

On January 26, 2023, Hut 8 filed a Statement of Claim in the Superior Court of Justice of Ontario (the “Court”) against Validus Power Corp. and its subsidiary, Bay Power Corp. (collectively, “Validus”), in respect of Validus’ failure to meet its contractual obligations under the power purchase agreement it entered into with Hut 8 at the Company’s mining facility in North Bay, Ontario.
On February 9, 2023, Hut 8 received a notice of termination from Validus of the Company’s lease at the North Bay facility. The notice of termination is without merit and Hut 8 reserves all rights in respect thereof, which it expects to address as part of the proceedings before the Court. Hut 8 does not intend to make additional comments on this subject unless otherwise determined to be appropriate.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Hut 8 and US Bitcoin announce merger of equals to create a preeminent digital asset mining, hosting, managed infrastructure operations, and High Performance Computing organization

Posted on 7 February 20235 December 2023 by Sam Dias

Transaction is expected to dramatically enhance trajectory of the digital asset mining business:

5.6 EH/s installed self-mining capacity at five sites across North America

Combined Company’s diversification strategy to expand significantly, establishing new, fiat revenue generating lines of business:

220 MW of hosting infrastructure at King Mountain, Texas

Managed infrastructure operations powered by 680 MW at Kearney, Nebraska, Granbury, Texas, and King Mountain Texas sites

Gross energy across self-mining, hosting, and managed infrastructure operations sites totaling approximately 825 MW

Transaction expected to accelerate achievement of ESG objectives by adding renewable energy and zero carbon emission energy from wind, hydro, and nuclear sources

Bill Tai to maintain role as Board Chair, Jaime Leverton to continue as CEO, Asher Genoot to continue as President, Michael Ho to become Chief Strategy Officer, Shenif Visram to continue as CFO

Combined Company to be named “Hut 8 Corp.” and domiciled in the United States

This news release constitutes a “designated news release” for purposes of the Company’s prospectus supplement dated August 17, 2022 to its short form base shelf prospectus dated August 5, 2022. All dollar amounts in this release are in USD unless otherwise noted.

TORONTO, ONTARIO and MIAMI, FLORIDA February 7, 2023 – Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a large, innovation-focused digital asset mining pioneer and high performance computing infrastructure provider, and U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”), builder and strategic operator of four Bitcoin mining centres across the United States announced today that each of their Boards of Directors have unanimously approved a definitive business combination agreement (the “Business Combination Agreement”) under which the companies will combine in an all-stock merger of equals (the “Transaction”). The combined company will be named “Hut 8 Corp.” (“New Hut” or the “Combined Company”) and will be a U.S.-domiciled entity. The Transaction is expected to establish New Hut as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading best practices in ESG.

“Our established track record of creating shareholder value through organic growth and strategic acquisitions while maintaining a balance sheet-first approach has positioned us perfectly to advance our growth trajectory through this business combination,” said Jaime Leverton, CEO, Hut 8. “Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong, U.S.-based player that is ready and able to seize additional opportunities as they arise.”

New Hut will have access to approximately 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations.

It will have 5.6 EH/s of installed self-mining capacity and 244 MW of total energy available at five sites with current self-mining operations: Medicine Hat, AB; Drumheller, AB; Niagara Falls, NY; Granbury, TX; and King Mountain, TX. The 1.7 EH/s installed self-mining production at the King Mountain, TX site is owned by the King Mountain Joint Venture in which USBTC has a 50% membership interest alongside a leading energy partner (the “King Mountain JV”). USBTC continues to address a legal dispute with the City of Niagara Falls, NY over operations at the site in the same city. While operations continue uninterrupted, the team has a contingency plan in place that it will pursue should a resolution not be met.
New Hut will manage 220 MW of hosting infrastructure at its King Mountain, TX site, powered by a mix of sources including wind and nuclear, supporting multiple clients, including some of the industry’s largest miners. Hosting is owned by the King Mountain JV.
The Combined Company will manage 680 MW of infrastructure operations powered by energy from a mix of sources including renewable and zero-emission in Kearney, NB and Granbury and King Mountain, TX. This unique, leading-edge service offering gives Bitcoin mine site owners the opportunity to have USBTC’s professionals manage all day-to-day operations, hosting, site management, and maintenance using purpose-built site management software.

“We’ve been searching for the right partner to join us on our ambitious growth journey for some time and are confident that Hut 8 is the perfect fit,” said Michael Ho, co-founder and CEO of USBTC. “We were initially attracted to Hut 8’s strong track record, admirable fiscal management through all market cycles, and like-minded approach to generating diversified lines of revenue. Through this process, we’ve determined that the strategic impact this Transaction will drive is significant: we see a clear path to leveraging our collective vision to drive innovative technology advancements and become a second-to-none operator.”

“The combination of Hut 8 and USBTC is an important step, but it’s truly just the beginning,” said Asher Genoot, co-founder and President of USBTC. “We believe that New Hut will challenge industry paradigms and set the standard for operating rigor and team culture. We are laser-focused on identifying opportunities to capture untapped value across the mining ecosystem. Together, we will become an exceptional self-mining operator, hosting provider, strategic operator of managed infrastructure, purveyor of high performance computing infrastructure, and industry-leading ASIC repair and sales hub, underpinned by world-class operating technology and IP to drive growth.”

The Transaction will create a leading Bitcoin mining company operating in North America with strong financial and operating metrics. Under the Business Combination Agreement, New Hut will be led by a combined Board of Directors and management team of Bitcoin miners, energy experts, and business leaders, bringing together the proven cultures, strengths, and capabilities of both companies.

“This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date,” said Jaime. “During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options, as agreed under the terms of the Business Combination Agreement. Upon a successful close of the Transaction, we will take the opportunity to carefully review and determine our go-forward treasury strategy.”

Details of the Transaction and strategic rationale

Pursuant to the Business Combination Agreement, shareholders of Hut 8 will receive, for each Hut 8 share, 0.2 of a share of New Hut common stock (the “Hut Consideration”), which will effectively result in a consolidation of the Hut 8 shares on a 5 to 1 basis. Stockholders of USBTC will receive, for each share of USBTC capital stock, 0.6716 of a share of New Hut common stock (the “USBTC Consideration” and together with the Hut Consideration, the “Consideration”). Based on the 5-day VWAP for the Hut 8 shares on the Nasdaq as of the last trading day prior to the date of this announcement, the aggregate Consideration implies a combined market capitalization of approximately U$990 million.

Upon consummation of the Transaction (“Closing”), existing Hut 8 shareholders and USBTC stockholders will each collectively own, on a fully-diluted in the money basis, approximately 50% each of the stock of the Combined Company. Following completion of the Transaction, Hut 8 and USBTC will each become wholly-owned subsidiaries of New Hut.

Key strategic, financial, and operational advantages of the combined business include1:

Strengthens financial position and flexibility. The combined balance sheet creates greater financial stability through market cycles and allows New Hut to grow and invest in new opportunities. Through increased scale and U.S. headquarters, the Combined Company anticipates being included in new indices and enjoying improved access to capital.
Catapults New Hut’s diversification strategy forward. New Hut is expected to generate monthly recurring fiat hosting revenues from long-term clients, Bitcoin mining sites looking to maximize the potential of their facilities through managed infrastructure operations, from equipment sales to customers, and from the MicroBT-certified repair centre business serving customers across North America and Northern Europe.
Maintains commitment to advancing the high performance computing traditional data centre business. New Hut remains committed to supporting and growing the HPC business, which continues to be a cornerstone of the Combined Company’s diversified strategy, generating monthly recurring revenue from approximately 370 North American customers.
Creates a strengthened, proven, and trusted senior leadership team and Board of Directors with a track record of value creation. The combined executive team will lead New Hut’s approximately 210 team members to deliver on the existing and proven strategy of growing long-term sustainable operations.
Grows pipeline of opportunities. The Transaction combines a pipeline of growth opportunities at existing, greenfield, and brownfield sites.
Enhances position in one of the world’s high-potential Bitcoin mining regions. The merger solidifies New Hut as a Bitcoin mining entity with operating capacity at high-quality sites in Alberta, Canada, and Texas, Nebraska, and New York in the United States.
Advances commitment to driving improvements across all ESG metrics. While the team is committed to shared ESG goals, the Transaction improves New Hut’s overall energy mix to include wind, hydro, and nuclear sources.
Improves energy expertise and hedging capabilities. The USBTC team brings significant leadership in energy origination, development, demand response, hedging, grid stabilization, and analytics to New Hut, significantly enhancing the Combined Company’s ability to better plan around stable and predictable energy usage and mitigate fluctuating prices across markets.

Transaction Summary and Timing

Under the terms of the Business Combination Agreement, the Transaction will be effected by way of a court-approved plan of arrangement (the “Arrangement”) involving Hut 8 under the Business Corporations Act (British Columbia) and a statutory merger (the “Merger”) involving USBTC under the laws of the State of Nevada. The Arrangement will require the approval of at least 66 2/3% of the votes cast by the shareholders of Hut 8 voting at a special meeting of Hut 8’s shareholders (the “Meeting”). The Merger is also subject to the approval of USBTC stockholders.

Completion of the Transaction is subject to regulatory and court approvals and other customary closing conditions. Regulatory approvals expected to be required include receipt of approval under the Competition Act (Canada) and under the United States Hart-Scott-Rodino Antitrust Improvements Act. In addition, the Arrangement will require the approval of the Supreme Court of British Columbia, New Hut’s common stock will require approval for listing on the Toronto Stock Exchange and The Nasdaq Capital Market. The Business Combination Agreement includes non-solicitation provisions for both Hut 8 and USBTC, with Hut 8 maintaining a fiduciary out to accept a superior proposal, subject to USBTC’s right to match and other customary exceptions. Hut 8 is required to pay USBTC a termination fee of US $10.0 million in certain circumstances.

Officers and Directors of Hut 8 have entered into support and voting agreements with USBTC, agreeing to vote their Hut 8 shares in favour of the Arrangement. Officers, Directors, and certain stockholders of USBTC have entered into a stockholder support agreement with Hut 8, agreeing to vote their USBTC stock in favour of the Merger.

It is anticipated that the Meeting and the receipt of the written consent of USBTC stockholders will occur in the second quarter of 2023. Closing is expected to occur thereafter, subject to satisfaction of the closing conditions under the Business Combination Agreement.

Pursuant to the Business Combination Agreement, Hut 8 has also agreed to provide USBTC with secured bridge financing during the interim period, with the expected amount of such financing ranging from US$6.0 – $6.5 million, subject to the completion of definitive loan documentation.

Following completion of the Transaction, the shares of New Hut will trade on the Toronto Stock Exchange and the Nasdaq Stock Market, subject to approval or acceptance of each exchange in respect of the Transaction.

Board of Directors’ approval

Each of Hut 8’s and USBTC’s respective Board of Directors have unanimously approved the Business Combination Agreement and the Transaction. Stifel GMP provided a fairness opinion to the Board of Directors of Hut 8 stating that, as of the date of such opinion, and based upon the scope of review and subject to the assumptions, limitations and qualifications stated in such opinion, the USBTC exchange ratio provided for in the Business Combination Agreement is fair, from a financial point of view, to Hut 8. The Board of Directors of Hut 8 also received a second, independent fairness opinion from the Duff & Phelps Opinions Practice of Kroll, LLC stating that, as of the date of such opinion and based upon the scope of review and subject to the assumptions, limitations and qualifications stated in such opinion, the USBTC exchange ratio provided for in the Business Combination Agreement is fair, from a financial point of view, to Hut 8.

Governance

Following the closing of the Transaction, the Combined Company will be domiciled in the United States and will be led by a proven leadership team that builds on the strengths and capabilities of both companies. The senior executive team and Board of Directors of Hut 8 will be enhanced by the addition of new members of USBTC who have significant knowledge and experience to support the combined operations. The Board of Directors of New Hut will consist of 10 directors, comprised of 5 directors from Hut 8 and 5 directors from USBTC.

The key senior management team and directors will include:

Chair of the Board – Bill Tai
Chief Executive Officer – Jaime Leverton
President – Asher Genoot
Chief Strategy Officer – Michael Ho
Chief Financial Officer – Shenif Visram

Advisors and counsel

Hut 8 has engaged Stifel GMP as its exclusive financial advisor and Bennett Jones LLP and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisors in connection with the Transaction. USBTC has engaged Needham & Company as its exclusive financial advisor and Stikeman Elliott LLP, Greenberg Traurig, P.A., and Brown Rudnick LLP as its legal advisors on the Transaction.

For further information on the terms and conditions of the Transaction, please refer to the Business Combination Agreement in its entirety and the management proxy circular to be mailed to Hut 8 shareholders for the Meeting in due course, which will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Additional details about the Transaction can be found in a joint investor presentation, which will be available on www.hut8.io/investors and www.usbitcoin.com. Shareholders are encouraged to read the management proxy circular and other relevant materials when they become available.

Analyst call

The conference call will begin at 8:30 a.m. ET on February 7, 2023.

To join the conference call without operator assistance, you may register and enter your phone number at https://app.webinar.net/JB0rqRaVWYj to receive an instant, automated call back that will place you in the conference
Those joining via operator should dial in 5-10 minutes early to: 1-888-664-6392 (toll-free, North America) and use access code: 28360816#

About Hut 8

About US Bitcoin Corp

Founded by a team of visionary entrepreneurs and experienced executives, USBTC is an efficient, eco-friendly, and large scale North American mining company. Through cutting-edge technology and a relentless commitment to operational excellence, USBTC seeks to set the standard for what is possible in its industry.

With campuses in New York, Nebraska, and Texas, USBTC aims to monetize electrons at scale, operating hundreds of megawatts of Bitcoin mining infrastructure both independently and on behalf of clients. USBTC prides itself on deploying next-generation software and hardware innovations to deliver results across its self-mining, hosting, and site management verticals.

Cautionary note regarding Forward–Looking Information

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 and USBTC as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the ability to obtain requisite shareholder approvals and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms or at all; the ability to obtain necessary stock exchange, regulatory, governmental or other approvals in the time assumed or at all; the anticipated timeline for the completion of the Transaction; the ability to realize the anticipated benefits of the Transaction or implementing the business plan for the Combined Company, including as a result of a delay in completing the Transaction or difficulty in integrating the businesses of the companies involved (including the retention of key employees); the ability to realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on mining activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; the outcome of any litigation proceedings in respect of USBTC’s legal dispute with the City of Niagara Falls, New York; security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic; climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to the Combined Company’s mining sites. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 17, 2022 and Hut 8’s other continuous disclosure documents which are available on the Company’s profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and on the EDGAR section of the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

These risks are not intended to represent a complete list of the factors that could affect Hut 8, USBTC, or New Hut; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and New Hut’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and each of Hut 8 and USBTC expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation.

Additional information about the Transaction and where to find it

In connection with the Transaction, that, if completed, would result in New Hut becoming a new public company, New Hut is expected to file a registration statement on Form S-4 (the “Form S-4”) with the U.S. Securities Exchange Commission (the “SEC”). USBTC and Hut 8 urge investors, shareholders, and other interested persons to read, when available, the Form S-4, including any amendments thereto, the Hut meeting circular, as well as other documents to be filed with the SEC and documents to be filed with Canadian securities regulatory authorities in connection with the Transaction, as these materials will contain important information about USBTC, Hut, New Hut and the Transaction. New Hut also has, and will, file other documents regarding the Transaction with the SEC. This press release is not a substitute for the Form S-4 or any other documents that may be sent to Hut’s shareholders or USBTC’s stockholders in connection with the Transaction. Investors and security holders will be able to obtain free copies of the Form S-4 and all other relevant documents filed or that will be filed with the SEC by New Hut through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Hut 8 at info@hut8.io and of USBTC at info@usbitcoin.com.

No Offer or Solicitation

For further information

Hut 8 investor contact:

Sue Ennis

Hut 8 media contact:

Erin Dermer

USBTC contact:

Matt Prusak

mprusak@usbitcoin.com

Hut 8 provides update on North Bay Facility

Posted on 26 January 20235 December 2023 by Sam Dias

TORONTO, CANADA January 26, 2023 – Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”) announces that it has filed a Statement of Claim in the Superior Court of Justice of Ontario (the “Court“) against Validus Power Corp. and its subsidiary, Bay Power Corp. (collectively, “Validus“), a third-party supplier of energy to the Company’s mining facility in North Bay, Ontario.

As previously disclosed, Hut 8 and Validus have been in an ongoing dispute due to Validus’ failure to meet its contractual obligations in the power purchase agreement (“PPA“) it entered into with the Company. Hut 8 is seeking various relief including enforcement of certain provisions of the PPA and monetary damages incurred as a result of the dispute.

As the matter is now before the Court, Hut 8 does not intend to make additional comments on this subject unless otherwise determined to be appropriate.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

For further information:

Investor contact:

Sue Ennis

sue@hut8.io

Media contact:

Erin Dermer

erin.dermer@hut8.io

Hut 8 Mining Production and Operations Update for December 2022

Posted on 6 January 20235 December 2023 by Sam Dias

161 Bitcoin mined in December

3,568 Bitcoin mined throughout 2022

100% of Bitcoin mined added to balance sheet, increasing reserves by 65% in 2022 to 9,086 BTC

TORONTO, January 6, 2023 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased our Bitcoin holdings by 161 in the period ending December 31, bringing our total self-mined holdings to 9,086 Bitcoin.

Production highlights for December 2022:

161 Bitcoin were generated, resulting in an average production rate of approximately 5.2 Bitcoin per day
- Unusually high energy prices led Hut 8 to curtail production and sell power back to the provider
Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in December were deposited into custody
Total Bitcoin balance held in reserve as of December 31 is 9,086 – a 65% increase over the balance at the end of 2021
Installed ASIC hashrate capacity at Hut 8’s Alberta facilities was 2.5 EH/s at the end of the month
Hut 8 produced 64.4 BTC/EH in December

Operational highlights:

While operations in North Bay remain suspended, as previously announced, Hut 8 is continuing to explore alternatives to mitigate the impact of the dispute with the third-party energy supplier to the site, including through organic and inorganic growth opportunities
We welcomed new CFO Shenif Visram to the Hut 8 leadership team in mid-December

“I am proud of the team’s collective and continued grit and perseverance through headwinds that built up in late Q4 2022,” said Jaime Leverton, CEO. “In spite of challenging market forces, we continued growing the largest unencumbered, self-mined Bitcoin stack of any publicly traded company, welcomed our new CFO Shenif Visram, and our balance sheet first approach has us well positioned in 2023.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

erin.dermer@hut8mining.com

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.ip

Hut 8 Mining Production and Operations Update for November 2022

Posted on 5 December 20225 December 2023 by Sam Dias

238 Bitcoin mined, bringing reserves to 8,925

TORONTO, December 5, 2022 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased our Bitcoin holdings by 238 in the period ending November 30, bringing our total self-mined holdings to 8,925 Bitcoin.

Production highlights for November 2022:

238 Bitcoin were generated, resulting in an average production rate of approximately 7.9 Bitcoin per day
Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in November were deposited into custody
Total Bitcoin balance held in reserve as of November 30 is 8,925
Installed ASIC hashrate capacity improved to 3.27 EH/s, of which 2.44 EH/s was available for operations following the suspension of mining activities at the North Bay mining facility (as announced on November 28, 2022); both metrics exclude certain legacy miners that are set to be fully replaced by the end of the year
2,000 new MicroBT Whatsminer 30S++/+ were installed in our Medicine Hat mining facility

“Installing 2,000 new miners in Medicine Hat has increased efficiencies and enhanced our hashrate capacity,” said Jaime Leverton, CEO. “At the same time, thanks to our balance-sheet first approach, we are able to continue to HODL everything we mine, growing what continues to be the largest self-mined unencumbered Bitcoin stack of any publicly traded company.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined unencumbered Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

sue@hut8.io

Hut 8 Media Relations

Yamini Coen

yamini.coen@hut8.io

Hut 8 provides update on North Bay Facility

Posted on 28 November 20225 December 2023 by Sam Dias

This news release constitutes a “designated news release” for purposes of the Company’s prospectus supplement dated August 17, 2022 to its short form base shelf prospectus dated August 5, 2022.

TORONTO, CANADA November 28, 2022 – Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”) announces that it has requested mediation proceedings to be commended with Validus Power Corp. (“Validus“), a third-party supplier of energy to the Company’s mining facility in North Bay, Ontario.

On November 9, 2022, Hut 8 delivered a notice of event of default to Validus in respect of Validus’ breaches of certain obligations under the terms of the power purchase agreement (“PPA“) between Validus and the Company. Validus has subsequently suspended delivery of energy to the Company’s mining operations in North Bay and delivered a notice of event of default alleging that Hut 8 failed to make certain payments related to the delivery of energy to the North Bay site, an allegation which the Company categorically denies. Hut 8 has therefore notified Validus that it intends to proceed to mediation pursuant to the terms of the PPA.

As previously announced, the Company is exploring alternatives to mitigate the impact of this dispute, including through organic and inorganic growth opportunities.

The Company will continue to monitor the situation and will provide additional updates in respect of the suspension of mining activities at North Bay, the mediation process and any further proceedings, if and as appropriate.

About Hut 8 Mining Corp.

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future.

Specifically, such forward-looking information included in this press release include, but are not limited to, statements with respect to the North Bay facility and the expected outcome of any proceedings related to Validus. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including those risks described in greater detail in the Company’s annual information form dated March 17, 2022 as well as its most recent Base Shelf Prospectus dated August 5, 2022 and Prospectus Supplement dated August 17, 2022, all of which are available at www.sedar.com, and should be considered carefully.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Investor contact:

Sue Ennis

sue@hut8mining.com

Media contact:

Erin Dermer

Hut 8 Mining Production and Operations Update for August 2022

Posted on 6 September 20225 December 2023 by Sam Dias

375 Bitcoin mined, bringing reserves to 8,111

TORONTO, September 6, 2022 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased its Bitcoin holdings by 375 in the period ending August 31, bringing its total self-mined holdings to 8,111 Bitcoin.

Production highlights for August 2022:

375 Bitcoin were generated, resulting in an average production rate of approximately 12.1 Bitcoin per day.
Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in August were deposited into custody.
Total Bitcoin balance held in reserve is 8,111 as of August 31, 2022.
Installed ASIC hash rate capacity was 2.98 EH/s at the end of the month, which excludes certain legacy miners that the Company anticipates will be fully replaced by the end of the year.
Hut 8 produced 125.8 BTC/EH in August.

Additional updates:

In late August, Hut 8 installed 180 NVIDIA GPUs in its flagship data centre in Kelowna, B.C. Currently mining Ethereum, the multi-workload machines will be designed to pivot on demand to provide Artificial Intelligence, Machine Learning, or VFX rendering services to customers.
Hut 8 is partnering with Zenlayer to bring their on-demand high-performance computing to Canadian Web 3.0 and blockchain customers for the first time.

“Our team delivered very strong results across our mining and high performance infrastructure businesses in August, positioning us well for continued success,” said Jaime Leverton, CEO. “We continue to receive and install our monthly shipments of new MicroBT miners on time, while actively adding to the suite of services we offer our data centre customers.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

Hut 8 partners with Zenlayer to bring on-demand high-performance computing to Web 3.0 and blockchain customers

Posted on 23 August 20225 December 2023 by Sam Dias

Partnership brings global edge cloud services provider Zenlayer to Canada

TORONTO, Aug 23, 2022 – Hut 8 Mining Corp. (NASDAQ: HUT) (TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high-performance computing infrastructure provider, has signed a partnership with Zenlayer, a massively distributed edge cloud service provider, to bring industry-leading edge computing solutions to Web 3.0, blockchain, and enterprise customers.

The partnership enables Hut 8 customers to instantly deploy and run their applications using Zenlayer’s edge cloud platform. Users can easily self-provision compute and networking services through APIs or an online console accessible to more than 40 countries in the world. In addition, Zenlayer’s customers will now be able to tap into the Canadian market as Zenlayer deploys additional cloud regions with Hut 8 at their Kelowna and Mississauga data centres.

“We are thrilled to welcome Zenlayer as a trusted partner to mutually enhance our offerings for high-performance computing to our existing and future customers,” said Jaime Leverton, CEO Hut 8. “Zenlayer is a global leader in edge cloud services, and we are proud to be the first to bring their services to Canada and continue growing the cloud solutions landscape for Web 3.0, blockchain, and enterprise customers.”

“Hut 8’s allocated digital asset mining and open-source distributed ledger technology make them a market leader in the crypto industry,” said Joe Zhu, Founder and CEO of Zenlayer. “We are delighted to partner with Hut 8 to provide joint solutions to the growing blockchain and Web 3.0 ecosystem, and look forward to deeper product integrations in the future.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

About Zenlayer
Zenlayer is a massively distributed edge cloud provider, operating more than 270 Points of Presence across 45+ countries. Businesses utilize Zenlayer’s on-demand cloud compute and networking services to deploy and run applications at the edge.

Zenlayer enables organizations to instantly improve real-time digital experiences at scale. Visit us online at www.zenlayer.com and connect with us on LinkedIn and Twitter.

Cautionary Note Regarding Forward–Looking Information

Certain information in this press release, including with respect to the Company’s future financial and/or operating performance, constitute “forward-looking information” and “forward-looking statements” withing the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information Form dated March 17, 2022, and Hut 8’s other materials filed with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission from time to time, available at www.sedar.com and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

Investor contact:

Sue Ennis

Media contact:

Erin Dermer

Hut 8 Mining Launches At-The-Market Equity Program

Posted on 17 August 20225 December 2023 by Sam Dias

TORONTO, CANADA August 17, 2022 – Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”) is pleased to announce that it has entered into an equity distribution agreement dated August 17, 2022 (the “ATM Agreement”) with Canaccord Genuity and Stifel (the “Agents”), pursuant to which the Company established an at-the-market equity program (the “ATM Program”).

Pursuant to the ATM Program, the Company may, at its discretion and from time-to-time during the term of the ATM Agreement, sell, through the Agents, such number of common shares of the Company (“Common Shares”) as would result in aggregate gross proceeds to the Company of up to US$200,000,000. Sales of Common Shares, if any, through the Agents will be made through “at-the-market” issuances, including without limitation, sales made directly on the Nasdaq Stock Market in the United States at the market price prevailing at the time of each sale. No Common Shares will be offered or sold under the ATM Program on the Toronto Stock Exchange or any other marketplace in Canada. The ATM Program may be terminated, with notice, by either party at any time.

The Company intends to use the net proceeds of the ATM Program, if any, principally for general corporate purposes (including funding ongoing operations and/or working capital requirements). The net proceeds of the ATM Program may also be used to repay indebtedness outstanding from time to time, discretionary capital programs, and potential acquisitions. Since the Common Shares will be distributed at market prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company and in accordance with the terms of the ATM Agreement.

Prior to commencing the ATM Program, the Company terminated the at the market offering agreement between the Company and H.C. Wainwright & Co., LLC related to its previous at-the-market offering of Common Shares for aggregate proceeds of up to US$65 million, which was launched on February 11, 2022.

The offer and sale of the Common Shares under the ATM Program will be made by means of a prospectus supplement dated August 17, 2022 (the “Prospectus Supplement”) which supplements the Company’s existing short form base shelf prospectus dated August 5, 2022 (the “Base Shelf Prospectus”) included in the Company’s U.S. registration statement on Form F-10 (File No. 333-266608) under the U.S.-Canada multijurisdictional disclosure system (the “Registration Statement”). The Registration Statement was declared effective by the United States Securities and Exchange Commission (the “SEC”) on August 10, 2022. Copies of the Registration Statement and the Prospectus Supplement can be found on EDGAR at www.sec.gov and copies of the Base Shelf Prospectus and the Prospectus Supplement can be found on SEDAR at www.sedar.com. Copies of such documents may also be obtained from: Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, 12th Floor, Boston MA 021990 or by email at prospectus@cgf.com.

Such documents contain important information about the ATM Program. Prospective investors should read the Base Shelf Prospectus and the Prospectus Supplement as well as the Registration Statement before making an investment decision.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Hut 8 Mining Corp.

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Statement Regarding Forward-Looking Statements

Specifically, such forward-looking information included in this press release include, but are not limited to, statements with respect to the following: including statements regarding the aggregate value of Common Shares which may be issued pursuant to the ATM Program and the Company’s expected use of the net proceeds from the ATM Program, if any. Readers are cautioned that such information may not be appropriate for other purposes. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. Material assumptions include: assumptions regarding the level of demand for the Common Shares under the ATM Program, the U.S./Canadian dollar exchange rate, the expected impact of the COVID-19 pandemic and transaction costs.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Investor contact:

Sue Ennis

Media contact:

Erin Dermer

Hut 8 Reports Operating and Financial Results for Q2 2022

Posted on 11 August 20225 December 2023 by Sam Dias

Strong quarterly revenue of $43.8 million
Bitcoin holdings increased 14.6% to 7,406 in Q2
Achieved adjusted EBITDA1 of $6.8 million

TORONTO, ON, August 11, 2022 — Hut 8 Mining Corp. (Nasdaq | TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, is pleased to announce its financial results for the quarter ended June 30, 2022. All dollar figures are in Canadian Dollars (“CAD”), unless otherwise stated.

“We have been anticipating market volatility for nearly a year and took proactive measures to successfully navigate the current downturn through the balance of the cycle,” said Jaime Leverton, CEO of Hut 8. “Our continued growth in digital asset mining operations and in our Bitcoin reserves, coupled with our first full quarter generating uncorrelated fiat revenue in our high performance computing business, has positioned us well to drive future success.”

“Our operational orientation and conservative, balance sheet first approach, continued to serve us well in the second quarter,” said Shane Downey, CFO of Hut 8. “We generated strong revenue in our digital asset mining business, made strides in solidifying and growing our high performance computing business and remain focused on the continued health of the company overall.”

Q2 2022 HIGHLIGHTS

Revenue increased by $10.3 million to $43.8 million compared to $33.5 million for the quarter ended June 30, 2021 (“Q2 2021”).

The Company mined 946 Bitcoin in the quarter ended June 30, 2022 (“Q2 2022”), a 71% increase compared to the same period in 2021 due to an increase in hashrate from additional highly efficient miners and initial ramping of activities at Hut 8’s third mining site in North Bay, Ontario.

Hut 8’s high performance computing operations generated $4.7 million of revenue in the quarter, the majority of which is monthly recurring revenue.

Hut 8’s mining site in North Bay, Ontario has been gradually ramping up with approximately 20 MW of power and approximately 5,800 miners installed as of June 30, 2022, which are adding approximately 565 PH/s to Hut 8’s mining capacity.

The Company installed 7,199 new MicroBT M30S, M30S+, and M31S+ miners at the Drumheller, Alberta, Medicine Hat, Alberta, and North Bay, Ontario facilities during Q2 2022. The installation of these miners brought Hut 8’s operating capacity to 2.78 EH/s as of June 30, 2022, an increase of 9% in hashrate compared to March 31, 2022.
The Company further strengthened its executive team with the appointment of Aniss Amdiss as Chief Legal Officer, effective July 11, 2022.

FINANCIAL SUMMARY

Revenue for Q2 2022, was $43.8 million compared to $33.5 million in Q2 2021. The increase was primarily driven by the Company’s digital asset mining operations, where the Company mined 946 Bitcoin and generated $39.1 million of revenue, versus 553 Bitcoin mined and $31.4 million of revenue in Q2 2021. The increase in Bitcoin mined is due to the significant increase in Hut 8’s average hashrate stemming from the expansion of the Company’s highly efficient mining fleet and ramp-up activities of the Company’s new site in North Bay, Ontario. The Company’s newly-acquired high performance computing operations generated $4.7 million of primarily recurring revenue in the quarter.

Net loss for Q2 2022 was $88.1 million and net loss per share was $0.49, compared to net loss of $4.0 million and net loss per share of $0.03 for the same period in 2021. The change reflects the non-cash revaluation loss on digital assets, partially offset by higher revenue and the non-cash revaluation gain on warrants liability.

Mining profit(i) was $14.9 million in Q2 2022, compared to $19.3 million in Q2 2021. The change is mainly due to a lower average Bitcoin price and increased average power costs, which were partially offset by the revenue associated with the higher number of Bitcoin mined.

Adjusted EBITDA(i) was $6.8 million, compared to $14.4 million in Q2 2021. Increased revenues from mining operations and contributions from high performance computing operations were offset by compressed mining margins due to lower average Bitcoin price and higher general and administrative expenses incurred to support the growth in Hut 8’s mining and high performance computing operations.

Cost of revenue consists of site operating costs and depreciation and was $47.7 million for Q2 2022 compared to $16.6 million in Q2 2021. Site operating costs for the quarter ended June 30, 2022, was $26.8 million, of which $24.5 million was attributable to our mining operations and $2.3 million to our high performance computing operations. The average cost of mining each Bitcoin for Q2 2022 was approximately $25,900, compared to approximately $24,700 per Bitcoin in Q2 2021. The increase in average cost of mining Bitcoin was primarily due to higher power prices, partially offset by the deployment of a more efficient mining fleet. Depreciation expense increased to $20.9 million during Q2 2022 compared to $3.0 million in Q1 2021, driven by the significant deployment of new mining equipment over the past twelve months as well as $1.3 million of additional depreciation from our newly acquired high performance computing operations.

For more information, please refer to the Management’s Discussion & Analysis and the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2022 and 2021. These documents will be available on the Company’s website at www.hut8mining.com, under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.gov.

NON-IFRS MEASURES

This press release makes reference to certain measures that are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore not necessarily comparable to similar measures presented by other companies. The Company uses non-IFRS measures including “Adjusted EBITDA” and “Mining profit” as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from Management’s perspective and should not be viewed as alternatives to, or replacements of, measures of operating results and liquidity presented in accordance with IFRS.

The following tables and definitions reconcile non-IFRS measures used by the Company to analyze the operational performance of Hut 8, to their nearest IFRS measure and should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2022 and 2021.

Mining Profit

“Mining profit” represents gross profit (revenue less cost of revenue), excluding depreciation and revenue and site operating costs directly attributable to hosting services and high performance computing operations. Mining profit shows profitability of the Company’s core digital asset mining operation, without the impact of non-cash depreciation expense. Mining profit measure provides the investors the ability to assess the profitability of the mining operations exclusive of general and administrative expenses.

The following table reconciles Gross profit to our non-IFRS measure, Mining profit:

Adjusted EBITDA

“Adjusted EBITDA” represents EBITDA (net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization) adjusted to exclude non-cash share-based compensation, fair value gain or loss on revaluation of digital assets and warrants, non-recurring impairment charges or reversals of impairment, and costs associated with one-time or non-recurring transactions. Adjusted EBITDA is used to assess profitability without the impact of non-cash accounting policies, capital structure and one-time or non-recurring transactions. This performance measure provides a consistent comparable metric for profitability of the Company across time periods.

The following table reconciles net income (loss) to our non-IFRS measure, adjusted EBITDA:

CORPORATE UPDATES

Hut 8 anticipates that based on the current installed hashrate and scheduled deliveries of new miners, the Company will reach 3.55 EH/s organically by the end of 2022.

As part of the Company’s ongoing integration of the recently acquired high performance computing operations, Hut 8 rationalized certain low-margin product and service offerings during the second quarter. Hut 8 believes these improvements will better position the Company to realize profitable revenue growth in 2023. As a result, the Company has withdrawn the revenue growth guidance provided in its Q1 2022 results.

CONFERENCE CALL

Hut 8’s Q2 2022 conference call will begin at 10 a.m. ET on August 11, 2022. Those wishing to join via telephone should dial in 5 minutes early:

Within Canada and the US: 1-888-664-6392 access code: 62590720#

ANALYST COVERAGE OF HUT 8 MINING

A full list of Hut 8 Mining analyst coverage can be found here.

FORWARD-LOOKING INFORMATION

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, the COVID19 pandemic, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, counterparty risk, failure to achieve intended benefits of power purchase agreements, including securing full power benefits at current sites, the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 17, 2022 and Hut 8’s other continuous disclosure documents which are available on Company’s website at www.hut8mining.com, under the Company’s SEDAR profile at www.sedar.com and under the Company’s EDGAR profile at www.sec.gov.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Investor contact:

Sue Ennis

Media contact:

Erin Dermer

Hut 8 Mining Production and Operations Update for July 2022

Posted on 5 August 20225 December 2023 by Sam Dias

330 Bitcoin mined, bringing reserves to 7,736

TORONTO, August 5, 2022 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased its Bitcoin holdings by 330 in the period ending July 31. Hut 8 now has 7,736 Bitcoin in its holdings.

Production highlights for July 2022:

330 Bitcoin were generated, resulting in an average production rate of 10.61 Bitcoin per day
Our Ethereum mining – for which we receive payment in Bitcoin – generated approximately 10.7% of our total production
Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in July were deposited into custody
Total Bitcoin balance held in reserve is 7,736 as of July 31, 2022
Installed operating capacity was 2.92 EH/s at the end of the month
Hut 8 produced 113.01 BTC/EH in July

Additional updates:

Monthly shipments of MicroBT miners continue to arrive as scheduled and are being installed in real time
A severe thunderstorm on July 18 interrupted the power supply to the Medicine Hat mine and surrounding area – site infrastructure and equipment were not damaged – and power was restored on July 23
Hut 8’s high-performance computing business, which is not correlated to Bitcoin or Bitcoin mining, continues to grow: we recently signed Foundry as a cloud services client

“We continued to deliver results, growing our stack to 7,736 Bitcoin – one of the largest holdings globally – by mining efficiently,” said Jaime Leverton, CEO. “At the same time, we continue to focus on growing the uncorrelated recurring revenue within our high performance computing business and are thrilled to welcome Foundry aboard as a cloud services customer in our Mississauga data centre.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

Media advisory: Hut 8 to Release Q2 2022 Results August 11

Posted on 3 August 20225 December 2023 by Sam Dias

TORONTO, August 3, 2022 — Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, will be releasing results for the quarter ended June 30, 2022 via a conference call on August 11, 2022.

Who: Analysts, media, and investors are invited to attend.

What: Hut 8 executives will review the company’s second quarter financial results and comment on recent corporate developments.

When: Results will be shared via media release and on the Company’s website at http://hut8mining.com/investors/ by 9:30 a.m. ET on August 11, 2022. The conference call and webinar will begin at 10 a.m. ET.

Where: Those joining via telephone should dial in 5 minutes early.

Within Canada: 1-416-764-8659 access code: 62590720#
Within the US: 1-888-664-6392 access code: 62590720#

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

erin.dermer@hut8mining.com

Hut 8 Signs Partnership with Foundry

Posted on 2 August 20225 December 2023 by Sam Dias

Foundry selects Hut 8’s data centre infrastructure for cloud services

TORONTO, Aug. 2, 2022 – Hut 8 Mining Corp. (NASDAQ: HUT) (TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, has signed a partnership with Foundry Digital LLC (“Foundry”), a wholly-owned subsidiary of Digital Currency Group Inc. (“DCG”) focused on digital asset infrastructure. The deal marks the first significant Blockchain-industry win for Hut 8’s high performance computing business.

Hut 8 will support multiple lines of business for Foundry, initially at the company’s Mississauga, Ontario data centre with plans to expand into the Kelowna, British Columbia data centre for infrastructure support across Canada. Foundry works with the North American digital currency mining and staking industry bringing institutional expertise, capital and market intelligence to help build decentralized infrastructure.

“We are delighted to welcome Foundry, who we’ve long supported through their digital asset mining pool, to our high performance computing data centre in Mississauga, Ontario,” said Jaime Leverton, CEO of Hut 8. “Foundry is a leader in the digital asset industry, and we look forward to enabling their continued growth with cutting-edge infrastructure.”

“Hut 8 has been a trusted partner of Foundry’s since 2020,” said Dan Magnuszewski, CTO of Foundry. “As Bitcoin industry veterans with expertise in data centre infrastructure, Hut 8 knows our industry intimately, which is why they were a natural fit when we sought infrastructure services.”

About Foundry Digital LLC

A subsidiary of DCG, Foundry Digital LLC was created to meet the institutional demand for better capital access, efficiency, and transparency in the digital asset mining and staking industry. Headquartered in Rochester, NY, Foundry leverages its institutional expertise, capital, and market intelligence to empower participants within the crypto ecosystem by providing the tools they need to build tomorrow’s decentralized infrastructure. For more information, please visit foundrydigital.com.

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer

Hut 8 Mining Production and Operations Update for June 2022

Posted on 6 July 20225 December 2023 by Sam Dias

328 Bitcoin mined, bringing reserves to 7,406
Hut 8 continues to HODL Bitcoin
North Bay site operating on 20 MW of power

TORONTO, July 6, 2022 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, increased its Bitcoin holdings by 328 in the period ending June 30. With 7,406 unencumbered Bitcoin in reserve, Hut 8 remains committed to its HODL strategy.

Production highlights for June 2022:

328 Bitcoin were mined, resulting in an average production rate of 10.9 Bitcoin per day
100% of the self-mined Bitcoin in June were deposited into custody, consistent with our longstanding HODL strategy
Total Bitcoin balance held in reserve is 7,406 as of June 30, 2022
Installed operating capacity was 2.78 EH/s at the end of the month

Additional updates:

Production at our new North Bay site scaled up throughout the month, with approximately 5,800 miners operating on 20 MW of power by June 30
Additional scaling will continue at North Bay in the coming weeks
Our high performance computing business, which is not correlated to Bitcoin or Bitcoin mining, continues to bring in steady monthly recurring revenue and remains on track to grow up to 18% by the end of 2022

“The team had a successful month in North Bay and will continue to scale up over the next few weeks,” said Jaime Leverton, CEO. “We are confident that our HODL strategy, coupled with the uncorrelated recurring revenue from our high performance computing business, will allow us to continue to successfully navigate the current market.”

About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select composite index and the first blockchain company to be added to the S&P/TSX Composite Index in 2021. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Cautionary Note Regarding Forward–Looking Information

Contacts

Hut 8 Investor Relations

Sue Ennis

Hut 8 Media Relations

Erin Dermer