HUT Hut 8 Corp

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 announced the purchase of approximately 990 Bitcoin. The aggregate purchase price of the acquired Bitcoin was approximately $100 million, or an average of approximately $101,710 per Bitcoin.

Combined with the Bitcoin held prior to this purchase, Hut 8’s strategic Bitcoin reserve now totals 10,096 Bitcoin with a market value of more than $1 billion as of December 18, 2024. Based on publicly available information, the Company believes this positions it as one of the ten largest corporate owners of Bitcoin in the world. The 10,096 Bitcoin held in reserve were acquired through low-cost production and the strategic at-market purchase announced today for a realized average cost of $24,484 per Bitcoin. The purchased Bitcoin will play a central role in an innovative financing model for the Company’s previously announced fleet upgrade.

Figure 1. Fundamentals-driven operating strategy focused on driving significant and scalable cost advantage in building a strategic Bitcoin reserve

	Produced As of 9/30/2024		Purchased As of 12/18/2024		Total
BTC held in reserve		9,106		990		10,096
Realized average cost per BTC held in reserve1	$	16,088	$	101,710	$	24,484
lllustrative cost to mine a BTC with fleet upgrade2	$	21,180
Note: (1) Reflects Hut 8’s cost to mine for produced Bitcoin and cost to purchase for purchased Bitcoin; (2) Reflects Hut 8’s cost to mine a Bitcoin for the three months ended September 30, 2024 of $31,482 adjusted for the impact of increased nameplate hashrate of the new miners expected to go online in Q1 2025 as part of our previously announced fleet upgrade. Hut 8’s cost to mine a Bitcoin is equivalent to the all-in electricity cost, net of credits from participation in ancillary demand response programs, to mine a Bitcoin at owned or leased sites and includes our net share of the King Mountain JV.

Hut 8’s strategic Bitcoin reserve bolsters the Company’s capital strategy by serving as a flexible asset that can optimize balance sheet performance and fund capital-intensive growth initiatives, including power and digital infrastructure development. Bitcoin held in reserve may be leveraged through option strategies, pledges, sales, or other strategies as appropriate. Decisions to utilize Bitcoin held in reserve will be made on a case-by-case basis, optimizing for return on invested capital and guided by rigorous cost-benefit analysis.

“A key component of our treasury strategy, the strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” said Asher Genoot, CEO of Hut 8. “We believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, as we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices, strengthening the yield of our reserve strategy.”

“Our decision to establish a strategic Bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders,” said Sean Glennan, CFO of Hut 8. “With a significant war chest for growth, we are leveraging Bitcoin as part of a treasury management strategy designed to generate risk-adjusted returns that outperform idle cash. Beyond building our reserve with a focus on low-cost production and strategic at-market purchases, we will continue to actively manage and trade around our holdings with the goal of unlocking additional value. Our flexible approach is designed to ensure that, if compelling opportunities arise within our operating business, we are prepared to strategically deploy our reserve to drive platform expansion and create long-term value.”

Figure 2. Flywheel effect accelerates value creation across capital and operating strategies

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 fifteen sites: five Bitcoin mining, hosting, and managed services sites in Alberta, New York, and Texas, five cloud and colocation data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta.

Cautionary Note Regarding Forward-Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws in Canada and the United States, including the United States Private Securities Litigation Reform Act of 1995 (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”, “is designed to”, “likely” or similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking information may include, but is not limited to, the Company’s intended use of the purchased Bitcoin, including its intention to optimize for return on invested capital and decision-making guided by rigorous cost-benefit analysis, its focus on driving significant and scalable cost advantage in building a strategic Bitcoin reserve, its expected go-forward cost to mine a Bitcoin (excluding hosted facilities) upon the expected fleet upgrade, its strategic Bitcoin reserve as a flexible asset, the Company’s flywheel effect to accelerate value creation across the business, the fortification of the Company’s financial position as it builds its strategic Bitcoin reserve, its ability to grow its Bitcoin holdings at a significant discount to market prices, its treasury management strategy, the Company’s ability to unlock additional value and its focus on delivering superior returns.

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 the Company 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. For factors that could cause actual results to differ materially from the forward-looking information in this press release, please see the risks described under the “Risk Factors” section of the Registration Statement, the Prospectus Supplement, the Company’s Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, filed with the SEC on April 26, 2024, and Hut 8’s other public disclosure documents, which are available under the Company’s EDGAR profile at www.sec.gov and SEDAR+ profile at www.sedarplus.ca.

Hut 8 Corp. Investor RelationsSue Ennisir@hut8.com

Hut 8 Corp. Media Relationsmedia@hut8.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/057ce780-f422-45c5-bc25-dc2816841a46

An overview of Hut 8’s strategic Bitcoin reserve can be downloaded here: http://ml.globenewswire.com/Resource/Download/08e37d60-bc9d-45e4-ac02-8816869bfcb5