Hut 8 Operations Update for April 2024

Miami, May 06, 2024 - 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 April 2024.

"Amidst the backdrop of the halving, the operational capabilities of our team enabled us to maximize deployed hashrate as we completed the relocation of our fleet from hosted to owned facilities and brought new capacity online," said Asher Genoot, CEO of Hut 8. "At Salt Creek, we energized 63 megawatts, totaling nearly 18,000 miners, just over three months after breaking ground at the greenfield site, which brings our current self-mining hashrate to 5.5 exahash per second."

"The miners deployed at Salt Creek were relocated from Kearney and Granbury, with operations of those sites now fully transitioned to the new owner. In eight days, we removed more than 25,000 miners on 440 pallets in 20 loaded 53-foot transports, a testament to our team's ability to execute complex operational activities efficiently to minimize downtime in our fleet," said Genoot.

"We also partially energized Cedarvale, a 215 megawatt site in Ward County, Texas, on behalf of our partner Ionic Digital. Our Managed Services business continues to serve as a key driver of growth and profitability for Hut 8 as we navigate post-halving market conditions and execute on our restructuring plan."

Highlights:

• 63 MW brought online at Salt Creek on schedule, with all-in cost expected to total less than $275,000 per megawatt pending completion of the project.
• Partially energized Ionic Digital's 215 MW Cedarvale site, with thousands of miners currently hashing and construction ongoing.
• Fulfilled transition-related responsibilities at Kearney and Granbury and are now entitled to receive an early termination fee of $13.5 million.

Operating Metrics

Site Overview

Notes:

1. As of the end of the period
2. Includes all Self-Mining, Managed Services, and Hosting infrastructure, including 100% of the energy capacity at the King Mountain site, which is owned by the King Mountain JV in which the Company has a 50% membership interest and a Fortune 200 renewable energy producer has the remaining 50% membership interest (the "King Mountain JV").
3. Includes 215 megawatts assuming full capacity at Cedarvale, which was partially energized at the end of April.
4. Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site.
5. Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the King Mountain site.
6. Self-Mining operations for Hut 8 include 100% of operations at the King Mountain site.
7. Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 35.9K during April and 46.1K during March.
8. Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 3.6 EH/s during April and 4.5 EH/s during March.
9. Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 115 BTC during April and 192 during March.
10. 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 Kearney, Granbury, King Mountain, Rebel, Stiles, East Stiles, and Garden City). 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.
11. Miners are rounded to the nearest 100.
12. 42.6K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner during both April and March.
13. 4.7 EH/s under management net of Hut 8's joint venture partner's 50% share of the King Mountain JV during April and March.
14. Sites were previously consolidated into a single site called 'Hotel' but are now being reported separately.

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.'s portfolio comprises nineteen sites: ten 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 the Company's operational capabilities, growth, profitability, restructuring initiatives, ability to navigate the post-halving market conditions, anticipated all-in cost at Salt Creek and expected payment of the $13.5 million early termination fee for Kearney and Granbury.
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 centre 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.