19.5 EH/s and 762 MW under management in mining with path to 33.5 EH/s

Announced partnership with BITMAIN to host next-generation ASIC miner with purchase option to reach 20 EH/s of self-mining

GPU-as-a-service subsidiary generating revenue with first cluster fully online

Outstanding balance of Anchorage Digital loan equitized at price of $16.395 per share

MIAMI, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today released its operations update for September 2024.

“We made significant strides in scaling our compute layer across Bitcoin mining and AI this month,” said Asher Genoot, CEO of Hut 8. “In partnership with Bitmain, we launched a next-generation, DLC-cooled ASIC miner. We are targeting a 15 EH/s hosting deployment at our Vega site in the Texas Panhandle by H1 2025, which is expected to generate ~$135 million in annualized hosting revenue on a fully ramped basis. The agreement’s purchase option creates a clear path to 20 EH/s of self-mining capacity by allowing us to fully acquire the hosted machines for our fleet. This deal demonstrates our commitment to pushing the mining industry forward while positioning for expansion into AI data centers.”

“Our GPU-as-a-service vertical is now fully operational and generating revenue. As we advance discussions with potential partners to expand our digital infrastructure layer across Bitcoin mining and AI compute, we remain committed to maintaining balance sheet strength and creative structuring. To that end, we have also enhanced our financial position by fully converting our ~$38 million Anchorage Digital loan into equity at $16.395 per share of common stock, which represents a 51% premium to the Company’s 20-day VWAP through the day prior to the signing of the equitization agreement.”

Highlights:

• Announced partnership with BITMAIN to host U3S21EXPH ASIC miner in H1 2025 with path to 20 EH/s of self-mining capacity; partnership is expected to generate ~$135 million in annualized hosting revenue on a fully ramped basis
• Brought 1,000 NVIDIA H100 GPUs online and began generating revenue for new GPU-as-a-service subsidiary Highrise AI, Inc.
• Announced equitization of ~$38 million Anchorage Digital loan at a price of $16.395 per share
• Continued construction of Ionic Digital’s Cedarvale site and remain on track to complete site buildout by December

Operating Metrics

Energy Infrastructure Platform¹

Upcoming Conferences & Events:

• October 7–9, 2024: Yotta 2024
• October 15, 2024: USC Marshall Energy Business Summit 2024
• November 13–14, 2024: Cantor Fitzgerald Crypto, Digital Assets & AI Infrastructure Conference 2024
• November 19, 2024: Craig-Hallum 15th Annual Alpha Select Conference
• November 19, 2024: Benzinga Future of Digital Assets Conference 2024
  

About Hut 8 

Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising twenty sites: eleven Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

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 Hut 8 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 business, 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. Specifically, such forward-looking information included in this press release includes statements relating to our path to increase our EH/s under management to 33.5 EH/s, our path to increase self-mining EH/s to 20 EH/s through the purchase option with Bitmain, the timing and potential revenues for the hosting deployment at our Vega site, our plans to expand into AI data centers, our discussions with potential partners to expand our digital infrastructure layer across Bitcoin mining and AI compute, our commitment to balance sheet strength and creative structuring, and the timing to complete the Cedarvale site buildout for Ionic Digital.

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; 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 mining sites and other risks related to the digital asset mining and data center business. For a complete list of the factors that could affect Hut 8, please see the “Risk Factors” section of Hut 8’s Transition Report on Form 10-K, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.

Hut 8 Corp. Investor Relations
Sue Ennis
ir@hut8.com

Hut 8 Corp. Media Relations
media@hut8.com