Hut 8 Operations Update for July 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 July 2024.

“We are continuing to see the impact of our ongoing optimization efforts in our self-mining business,” said Asher Genoot, CEO of Hut 8. “Our average energy cost has declined materially since bringing Salt Creek online and completing the planned deployment of our curtailment software, and we continue to build and refine our data science platform to drive further efficiencies and margin expansion.”

“We also announced the first conversion from our previously announced pipeline of energy capacity under exclusivity, a site in the Texas Panhandle located adjacent to a windfarm with 205 megawatts of immediately available power capacity. The site will be able to pull power directly from the ERCOT grid when the wind farm is not generating power. Across our platform, we now own or manage energy infrastructure representing access to 1.3 gigawatts of power capacity. We look forward to sharing more details on this site and our second quarter 2024 results during our earnings call on August 13th.”

Highlights:

• Announced plans for a site in Texas with 205 MW of immediately available power capacity
• Further progress in developing Cedarvale, with new capacity being brought online in tranches of 50 MW

Operating Metrics

Average during the period unless otherwise noted	July 2024	June 2024
Total energy capacity under management1,2,3	762 MW	762 MW
Total deployed miners under management4	174.2K	172.1K
Total hashrate under management5	18.0 EH/s	17.8 EH/s
Self-Mining6
Deployed miners7	58.2K	58.4K
Deployed hashrate8	5.5 EH/s	5.7 EH/s
Bitcoin produced1,9	105 BTC	107 BTC
Bitcoin on balance sheet1	9,102 BTC	9,105 BTC
Managed Services2,10
Energy capacity under management1	582 MW	582 MW
Deployed miners under management	125.4K	123.1K
Hashrate under management	13.4 EH/s	13.1 EH/s
Hosting
Deployed miners under management11,12	76.7K	76.7K
Hashrate under management13	8.5 EH/s	8.4 EH/s

Energy Infrastructure Platform1

				Current Revenue Stream(s)14
Site	Location	Owner	Power Capacity	Self-Mining	Managed Services	Hosting	HPC	Power Sales
Expansion Site 115	Texas Panhandle	Hut 8	205 MW
Medicine Hat	Medicine Hat, AB	Hut 8	67 MW	Yes
Salt Creek	Orla, TX	Hut 8	63 MW	Yes
Alpha	Niagara Falls, NY	Hut 8	50 MW	Yes		Yes
Drumheller16	Drumheller, AB	Hut 8	42 MW
Kelowna	Kelowna, BC	Hut 8	1.1 MW				Yes
Mississauga	Mississauga, ON	Hut 8	0.9 MW				Yes
Vaughan	Vaughan, ON	Hut 8	0.6 MW				Yes
Vancouver II	Vancouver, BC	Hut 8	0.5 MW				Yes
Vancouver I	Vancouver, BC	Hut 8	0.3 MW				Yes
King Mountain17	McCamey, TX	Hut 8 (JV)	280 MW	Yes	Yes	Yes		Yes
Iroquois Falls18	Iroquois Falls, ON	Hut 8 (JV)	120 MW					Yes
Kingston18	Kingston, ON	Hut 8 (JV)	110 MW					Yes
North Bay18	North Bay, ON	Hut 8 (JV)	40 MW					Yes
Kapuskasing18	Kapuskasing, ON	Hut 8 (JV)	40 MW					Yes
Cedarvale3	Barstow, TX	Managed	215 MW		Yes
East Stiles	Midland, TX	Managed	30 MW		Yes
Rebel	Midland, TX	Managed	25 MW		Yes
Stiles	Midland, TX	Managed	20 MW		Yes
Garden City	Midland, TX	Managed	12 MW		Yes
Total			1,322 MW

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 49.2K during July and 49.4K during June.
(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 4.7 EH/s during July and 4.8 EH/s during June.
(9)	Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 88 BTC during July and 90 during June.
(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 July and June.
(13)	4.7 EH/s and 4.6 EH/s under management net of Hut 8’s joint venture partner’s 50% share of the King Mountain JV during July and June, respectively.
(14)	Reflects revenue sources to Hut 8, its subsidiaries, and/or joint ventures in which they participate.
(15)	Site is currently under development.
(16)	Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site.
(17)	Owned by a JV between Hut 8 and a Fortune 200 renewable energy producer in which Hut 8 has an approximately 50% membership interest.
(18)	Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately 80% membership interest.

Upcoming EventsHut 8 will be hosting a conference call to discuss the Company’s second quarter 2024 results on Tuesday, August 13th, 2024 at 8:30a.m. ET. The webcast can be viewed here.

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: 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, four power generation assets in Ontario, and one newly announced site in the Texas Panhandle. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking InformationThis 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 impact of the Company’s optimization efforts, building and refining the Company’s data science platform to drive further efficiencies and margin expansion, and the Company’s progress developing its Cedarvale site.

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.

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