Hut 8 Mining Production and Operations Update for January 2023

188 Bitcoin extracted in January

Kept the largest amount self-extracted Bitcoin in reserve on January 31 of any listed company

TORONTO, 13 February 2023 /CNW/ – Hut 8 Mining Corp . (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused mining pioneer and high-performance data infrastructure provider, mined 188 Bitcoin in the period ending 31 January 2023.

Production highlights for January 2023:

• 188 Bitcoin was generated, resulting in an average production rate of approx. 6.1 Bitcoin per day.

• Total Bitcoin balance held in reserve per January 31 is 9,274, and further to our announcement on 7 February 2023We expect to sell our January Bitcoin production to finance operating costs.

• Installed ASIC hashrate capacity at ours Alberta facility was 2.5 EH/s at the end of the month.

• Cabin 8 produced 75.2 BTC/EH in January.

Operational Highlights:

• On 7 February 2023Hut 8 announced a merger of equals with US Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) which is expected to establish the combined company as a large-scale, publicly traded company Bitcoin miner focused on economic mining, highly diversified revenue streams and industry-leading ESG best practices.

“We have been intentional and strategic in pursuing our HODL strategy: by building a large, unencumbered stack, we have given ourselves the opportunity to strategically use a portion of it to cover operating expenses rather than having to seek other funding options with less attractive terms,” ​​said Jaime Leverton, CEO. “I am convinced that selling production while we focus on closing the merger with USBTC is the right approach, as we expect to create a strong self-recovery, hosting, managed infrastructure operations and HPC organization over the long term.”

Other Company Updates:

• On 26 January 2023sent Hut 8 a statement of claim in the Superior Court of Justice of Ontario (the “Court”) v. Validus Power Corp. and its subsidiary, Bay Power Corp. (collectively “Validus”), with regard to Validus’ failure to fulfill its contractual obligations in accordance with the power purchase agreement it entered into with Hut 8 at the company’s mining facility i North Bay, Ontario.

• On 9 February 2023Hut 8 received a notice from Validus about the Company’s lease at North Bay the facility. The notice of termination is without reason and Hut 8 reserves all rights in respect of this, which it expects to raise as part of the proceedings before the court. Hut 8 does not intend to comment further on this subject unless otherwise determined to be appropriate.

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About Hut 8

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, positive on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high-performance computing worlds. With two digital asset mining facilities located in Southern Alberta and a third location in the North Bay, Ontarioall located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or listed company globally. With 36,000 square meters of geo-diverse data center space and cloud capacity connected to electric grids powered by significant renewable energy sources and emission-free resources, Hut 8 revolutionizes conventional assets to create the first hybrid data center model that serves both the traditional high-performance computing. (Web 2.0) and nascent digital asset computing sectors, blockchain games and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination and passion, Hut 8 helps define the digital asset revolution to create value and positive effects for its shareholders and future generations.

Warning regarding forward-looking information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and US securities laws, respectively (collectively, “Forward-Looking Information”). All information, other than statements of historical fact, included in this press release that relates to activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitiveness, objectives, expansion and growth of the Company’s operations , operations, plans and other such matters are 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”, “may”, “perhaps”, “potential”, “predict”, “is designed for”, “likely” or similar expressions. In addition, all statements in this press release that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information and include, among other things, statements regarding: Bitcoin network dynamics; the Company’s ability to advance its long-standing HODL strategy; the company’s ability to produce further Bitcoin and maintain existing productivity rates at all facilities; the company’s ability to deploy more miners; the Company’s ability to continue to mine digital assets efficiently; the company’s expected recurring revenue and growth rate from its high-performance computing business; the expected results of the merger of the equals transaction with USBTC; and the Company’s ability to successfully navigate the current market; and statements with respect to North Bay the facility and the expected outcome of any legal proceedings related to Validus.

Statements that contain 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. Although 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 could cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, but not limited to, security and cyber security threats and hacking, malicious actors or botnets gaining control of processing power on Bitcoin network, further development and acceptance of Bitcoin network, changes to Bitcoin mining difficulties, loss or destruction of private keys, increases in fees for recording transactions in the blockchain, erroneous transactions, dependence on a limited number of key employees, dependence on third-party mining pool providers, regulatory changes, classification and tax changes, momentum price risk, fraud and failure related to exchange of digital assets, difficulties in obtaining banking services and financing, difficulties in obtaining insurance, permits and licenses, internet and power outages, 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, legal risk, business integration risk, changes in market demand, changes in networks and infrastructure, system outages, changes in leasing arrangements ings, failure to achieve intended benefits of power purchase agreements, potential for interrupted supply, or suspension of supply, of energy to the company’s mining facilities, and other risks related to digital assets and data center operations. For a complete list of the factors that may affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 17, 2022, and Hut 8’s other continuous disclosure documents available on the Company’s profile on the Electronic Document Analysis and Retrieval System at www. sedar.com and on the EDGAR section of the US Securities and Exchange Commission’s website at www.sec.gov.

These factors are not intended to represent a complete list of the factors that may affect Hut 8; however, these factors should be carefully considered. No guarantee can be given that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove to be incorrect, actual results may differ materially from those described in this press release as intended, planned, expected, believed , sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The effect of any assumption, risk, uncertainty or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or change any forward-looking statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, with the exception of what is required by law.

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