Hut 8 Operations Update for December 2023

Company purchased 63 MW substation in Culberson County, Texas to support near term growth optionality

Company software is driving efficiencies at Hut 8's Canadian mining sites

At 9,195, Hut 8 continues to have one of the largest self-mined Bitcoin reserves of any publicly traded company

MIAMI, Jan. 05, 2024 -- Hut 8 Corp. (Nasdaq | TSX: HUT), ("Hut 8" or the "Company") one of North America's largest, most innovative digital asset mining pioneers and high performance computing infrastructure providers is proud to share its operations report for December 2023.

Notes:
(1) Includes all Self-Mining, Managed Services, and Hosting infrastructure, including 100% of the energy capacity at the Echo site (King Mountain, TX).
(2) Includes all miners that are racked in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the Echo site (King Mountain, TX).
(3) Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the Echo site (King Mountain, TX).
(4) Self-Mining operations for Hut 8 Corp. include all operations at the Echo site (King Mountain, TX).
(5) Deployed miners are defined as miners that are physically racked, with power and networking.
(6) Indicates the target hashrate of all deployed miners.
(7) As of month-end.
(8) The Managed Services figures reflected in this table include the Self-Mining and Hosting metrics from the sites where Hut 8's Managed Services business is an additional service layer in the operation of the site (at Charlie, Delta, and Echo - site details below). As a result, the sum of the Self-Mining, Managed Services, and Hosting numbers will not add up to the "Total energy capacity under management", "Total deployed miners under management", and "Total hashrate under management" figures that are also reflected in the table.

"Throughout December, our first full month operating as Hut 8 Corp., we saw unseasonably warm temperatures across many parts of the continent, which helped to stabilize energy costs at several of our sites; at the same time, we realized efficiency improvements at our Canadian sites after switching operations over to our purpose-built software," said Jaime Leverton, CEO of Hut 8. "As we continued to focus on driving strong operating results, we also moved ahead with several strategic growth initiatives including the purchase of a new substation in Texas, which we believe will give us the optionality to engage in demand response and a combination of self-mining and hosting once the site buildout is completed."

Highlights:

• On December 31, Hut 8 signed a definitive agreement to purchase a 63 MW substation and 1.9 acres of land for approximately $7.1 million. The Company also entered into a lease for 20 additional acres of land in Culberson County, Texas. This transaction gives the Company the optionality to build out a front-of-the-meter site, engage in demand response programs, and expand our self-mining capabilities or our hosting capacity in the near- to medium-term.
• On December 28, the United States Bankruptcy Court for the Southern District of New York granted approval for Hut 8 to proceed with its full mining operations plan in connection with the Celsius Network LLC bankruptcy proceedings. The plan provides for the transfer of Celsius Network LLC's mining operations to a newly-created "MiningCo" and Hut 8 will provide end-to-end managed services for MiningCo's operations at five sites in Texas, including the design and development, engineering, financial modeling, budgeting, accounting, construction management, procurement, logistics, and RFP coordination at the fifth and largest site in Cedarvale. It is expected that when construction is complete at Cedarvale, the Company will oversee approximately 12 EH/s computing capacity (122,000 miners) and more than 300 MW of energy under the contract.
• In December, despite modest month-over-month changes in operational metrics as mainly self-mining machines were temporarily pulled offline for regular maintenance and repair, Hut 8 produced 63 more Bitcoin than in November, which is attributable to an increase in transaction fees and improved efficiency gains realized at Hut 8's Foxtrot and Golf sites in Medicine Hat and Drumheller after completing the implementation of the Company's purpose-built proprietary software at those sites.
  

Hut 8's expanded digital asset mining geographical footprint now includes the following sites:

Notes:
(1) Hut 8's Managed Services subsidiaries lead all aspects of site operations, including accounting, curtailment, and customer relations at the Charlie and Delta sites, which are owned by a multi-billion dollar AUM sustainable infrastructure investment firm. The Managed Services subsidiaries also lead all aspects of site operations at the Echo site.
(2) The Company has a 50% membership interest in the Echo site. The remaining 50% membership interest is held by a Fortune 200 renewable energy producer.

About Hut 8

Through innovation, imagination, and passion, Hut 8 Corp.'s seasoned executive team is bullish on creating value at the intersection of infrastructure and energy through Bitcoin mining and hosting, groundbreaking managed services, energy arbitrage, operating traditional data centers, and capitalizing on emerging technologies like AI and machine learning. Headquartered in Miami, Florida, Hut 8 Corp.'s infrastructure portfolio includes eleven sites: five high performance computing data centers across British Columbia and Ontario that offer cloud, co-location, AI, machine learning, and VFX rendering computing solutions, and six Bitcoin mining, hosting, and managed services sites located in Alberta, New York, Nebraska, and Texas. Long-distinguished for its unique treasury strategy, Hut 8 Corp. has one of the highest inventories of self-mined Bitcoin of any publicly-traded company globally. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Mining.

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 and New Hut expect or anticipate 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 the diversification of the Company's North American-wide operations; the Company's expectations for capacity and energy at Cedarvale and future growth in economical mining operations, high performance computing, extensive hosting operations, and the managed services business.

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 sitesand other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect Hut 8, please see the "Risk Factors" section of Hut 8's Registration Statement on Form S-4 dated November 7, 2023, available under the Company's EDGAR profile at www.sec.gov, in addition to the "Risk Factors" section of Hut 8 Mining Corp.'s Annual Information Form dated March 9, 2023, 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

sue@hut8.io

Hut 8 Corp. Media Relations

Erin Dermer

erin.dermer@hut8.io