Hut 8 Mining Production and Operations Update for September 2022

277 Bitcoin mined, bringing reserves to 8,388

TORONTO, October 4, 2022 /PRNewswire/ — Hut 8 Mining Corp . (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest innovation-focused digital asset mining pioneer and high-performance computing infrastructure provider, our Bitcoin holdings increased by 277 in the period ending September 30bringing our total self-mined holdings to 8,388 Bitcoin.

Production Highlights for September 2022:

• 277 Bitcoin were generated, resulting in an average production rate of approximately 9.2 Bitcoin per day
• In line with our long-standing HODL strategy, 100% of self-mined Bitcoin was deposited into escrow in September
• Total Bitcoin balance held in reserve from September 30 is 8,388
• Consolidated the most efficient miners with us Medicine hat website, increase hashrate efficiency by 11%
• Installed ASIC hashrate capacity was 3.07 EH/s at the end of the month, which excludes certain legacy miners that we expect to be fully replaced by the end of the year
• Hut 8 produced 90.2 BTC/EH in September

Additional updates:

• With Ethereum’s Merge to Proof of Stake complete, we are actively exploring opportunities to move additional GPUs to our data centers, while optimizing ASIC deployments across our three Bitcoin mining sites to improve our hashrate
• Unseasonably warm weather and global energy supply chain challenges caused power prices to fluctuate throughout September, and our operations team curtailed operations accordingly
• Production with us North Bay mine was discontinued mid-month, and new ventilation components were installed during the same period
• On September 20held our first Analyst Day at our newly renovated flagship data center Kelowna, BCwhere we visited the site and discussed our digital asset mining and HPC operations strategy

“We continue to add to our Bitcoin on balance sheet, which is the largest unencumbered, self-mined stack of any publicly traded mining company,” said Jaime Leverton, CHIEF EXECUTIVE OFFICER. “As we enter the fourth quarter with strong momentum, we are focused on optimizing our Bitcoin mining operations while expanding our high-performance computing business, which includes the possibility of using our GPU machines to drive AI, Machine Learning or VFX -provide delivery services to customers, and exploit the next most profitable Proof of Work digital asset during idle time.”

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 about bitcoin, blockchain, Web 3.0, and bridging the emerging and traditional high-performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any crypto miner or publicly traded company worldwide. With 36,000 square feet of geo-diverse data center space and cloud capacity connected to electrical grids powered by significant renewable and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data center model that serves both the traditional high-performance computing (Web 2.0) and emerging digital asset computing sectors, blockchain gaming 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 is helping to define the digital asset revolution to create value and positive impact for its shareholders and future generations.

Cautionary Note Regarding Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and U.S. securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical fact, included in this press release that addresses activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, objectives, expansion and growth of the Company’s businesses, 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”, “expect”, “allow”, “believe”, “estimate “, “expects”, “anticipates”, “may”, “may”, “potential”, “predicts”, “is designed to”, “likely” or similar expressions. In addition, any 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 others, statements regarding: Bitcoin and Ethereum network dynamics; the Company’s ability to advance its long-standing HODL strategy; the Company’s ability to produce additional Bitcoin and maintain existing productivity rates at all sites; the Company’s ability to deploy additional miners; the Company’s ability to continue to efficiently mine digital assets; the Company’s expected recurring revenue and growth rate from its high-performance computing business; the company’s ability to use its GPUs to provide AI, machine learning or VFX rendering services to customers; the company’s ability to use its GPUs to mine Proof of Work digital assets other than Bitcoin; and the Company’s ability to successfully navigate the current market.

Statements that contain forward-looking information are not historical facts, but rather 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 believed to be 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, level 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 cybersecurity threats and hacks, malicious actors or botnet gaining control of processing power on the Bitcoin or Ethereum network, further development and adoption of Bitcoin and Ethereum networks, changes to Bitcoin or Ethereum mining problems, 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 taxation changes, momentum price risk, fraud and failure related to cryptocurrency exchanges, 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 adoption or widespread use of cryptocurrency, 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 failure, changes in leasing arrangements and other risks related to the cryptocurrency and data center business. 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 ongoing disclosure documents available on the Company’s profile on the System for Electronic Document Analysis and Retrieval 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 an exhaustive list of the factors that may affect Hut 8; however, these factors must be carefully considered. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from those described in this press release as intended, planned, expected, believed, sought, proposed, estimated, predicted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any single assumption, risk, uncertainty or other factor on a particular forward-looking statement cannot be determined with certainty because it is interdependent and Hut 8’s future decisions and actions will depend on management’s assessment of all information on the relevant point. 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 statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Hut 8 Mining Corp