Hut 8 Operations Update for June 2024

Miami, July 03, 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 June 2024.

"Our corporate development team made significant progress this month advancing the expansion opportunities in our previously announced pipeline of more than 1,100 megawatts of energy capacity under exclusivity," said Asher Genoot, CEO of Hut 8. "We believe our recently announced investment from Coatue has further strengthened our positioning with potential site development counterparties, and we are excited to share more as projects develop and convert."

"We continue to optimize our existing assets, including our self-mining sites and five high performance computing data centers, for Bitcoin mining or AI workloads," said Asher Genoot, CEO of Hut 8. "At Salt Creek, for example, our team launched and completed initiatives to fortify the upstream electrical infrastructure supporting the facility. We expect our optimization initiatives to drive greater site longevity and productivity as we scale our data center portfolio. In parallel, we are actively engaged in discussions regarding upgrades to our miner fleet."

"Commercialization efforts for our new AI vertical are also progressing nicely, including the assembly of our first GPU cluster and fit-out of our data center suite. More than half of our 1,000 NVIDIA H100 GPUs have been configured and are now undergoing testing at the manufacturer's facility. We are on track to go live in H2 and begin generating revenue at a forecasted annual rate of approximately $20 million."

Highlights:

• Announced $150 million investment from Coatue to support buildout of next generation AI infrastructure platform
• Launched and completed optimization initiatives at Salt Creek, supporting month-over-month improvement in deployed miners, deployed hashrate, and Bitcoin produced
• Configured 512 NVIDIA H100 GPUs and began data center suite fit-out for new AI vertical, with commercialization efforts progressing on track for go-live in H2

Operating Metrics

Note: Figures reflect the completion of Hut 8's 400 MW Managed Services engagement at the Kearney and Granbury sites

Average during the period unless otherwise noted

Self-Mining⁶

Managed Services^2,10

Note: Figures reflect the completion of Hut 8's 400 MW Managed Services engagement at the Kearney and Granbury sites

Hosting

Energy Infrastructure Platform
As of end of June

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 first energized in April and is currently under construction.
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 49.4K during June and 48.2K during May.
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 4.8 EH/s during June and 4.6 EH/s during May.
9. Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 90 BTC during June and 74 during May.
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 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 June and May.
13. 4.6 EH/s under management net of Hut 8's joint venture partner's 50% share of the King Mountain JV during June and May.
14. Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site.
15. Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately 80% membership interest.

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 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 advancement of its expansion opportunities, positioning with potential site development counterparties, optimization of its existing assets, site longevity and productivity, scaling of its data center portfolio, commercialization efforts and expected go-live timing and revenue generation for its AI vertical.
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.