Hut 8 Announces ESG Goals to Drive a More Sustainable Future

The leading digital asset miner unveils a series of holistic targets around environmental, social and corporate governance (ESG) issues, from carbon removal to corporate diversity.

TORONTODec. 8, 2021 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), is pleased to announce its Environmental, Social and Governance (“ESG”) objectives as a part of its efforts to lead the global industry in innovation, inclusivity and sustainability.

“Technology, sustainability, inclusivity and innovation are part of our DNA at Hut 8, and we are proud to lead positive change in our sector, which we hope will build a legacy that our team and shareholders can be proud of,” said Jaime Leverton, Chief Executive Officer of Hut 8.

While the Company is sharing its objectives and goals today, ESG is not a new focus for Hut 8 and has been one of its key priorities under Leverton’s leadership. The primary objectives are centered around a suite of goals that extend to all aspects of corporate social responsibility, including:

  • Achieving carbon neutrality for scope 1 & 2 GHG emissions by 2025;
  • Reducing emissions through technological and operational innovation;
  • Fostering workplace health and safety, and maintaining zero total recordable incidents;
  • Focusing on corporate diversity across employee representation including the goal to achieve 25% employee representation from women;
  • Maintaining executive management team gender diversity of over 40% women;
  • Maintaining board gender diversity representation of over 30% women;
  • Continuing to be compliant with public company reporting and disclosure requirements; and,
  • Supporting and partnering with non-profit and charitable organizations that drive positive social impact and climate change efforts.

Hut 8’s approach to ESG will continually adapt based on new data and insights, which are consistent and in line with our near and long-term business strategy. Our Company’s long-term strategy will include actions focused on renewable energy and continued collaboration with suppliers to further reduce emissions.

In taking a proactive role in driving progress for the digital asset industry, Hut 8 became a founding member of the Bitcoin Mining Council in 2021. The Bitcoin Mining Council is a voluntary group of digital asset miners that promotes energy usage transparency and encourages the use of renewable energy sources. Additionally, Hut 8 joined the Crypto Climate Accord, which is the result of a collaborative effort inspired by the Paris Climate Agreement. As part of Hut 8’s ESG goals, the Company will be referencing its disclosures against the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) and intends to progressively enhance these disclosures over time.

For more detailed information on Hut 8’s ESG goals and accomplishments, visit: https://hut8mining.com/investors/environmental-social-and-governance/

About Hut 8:

Hut 8 is one of North America’s largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. With two sites located in energy rich Alberta and a third site in North Bay, Ontario, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any crypto miner or publicly traded company globally. Hut 8 is executing on its commitment to mining and holding Bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of Bitcoin’s market direction. The Company’s multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on ESG alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

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 the Company 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 Company’s businesses, 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”, “believe”, “estimate”, “expect” or similar expressions and includes, among others, statements regarding  the Company’s plans, goals, targets, commitments and strategies to advance its environmental, social, and governance (“ESG”) objectives, the steps the Company plans to make to meet those objectives, the Company’s approach to ESG, plans to expand the Company’s ESG commitments, the Company’s goal of achieving carbon neutrality for scope 1 and 2 emissions, the Company’s goal to maintain zero total recordable workplace safety incidents, the Company’s targets concerning board and employee diversity, the Company’s target dates for accomplishing any of the foregoing, and other statements that are not historically facts. Readers are cautioned that the foregoing list is not exhaustive.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. 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 alter 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Hut 8 Mining Corp

For further information: Media Contact: Hut 8, dea.masottipayne@northstrategic.com

S&P Dow Jones Indices Announces Changes to the S&P/TSX Composite Index


TORONTODec. 3, 2021 /CNW/ – As a result of the quarterly review, S&P Dow Jones Indices will make the following changes to the S&P/TSX Composite Index prior to the open of trading on Monday, December 20, 2021:

S&P/TSX COMPOSITE INDEX – December 20, 2021

COMPANY

GICS SECTOR

GICS SUB-INDUSTRY

ADDED

Advantage Energy Ltd. (TSX:AAV)

Energy

Oil & Gas Exploration & Production

ADDED

Baytex Energy Corp. (TSX:BTE)

Energy

Oil & Gas Exploration & Production

ADDED

Energy Fuels Inc. (TSX:EFR)

Energy

Coal & Consumable Fuels

ADDED

Freehold Royalties Ltd. (TSX:FRU)

Energy

Oil & Gas Exploration & Production

ADDED

Hut 8 Mining Corp. (TSX:HUT)

Information Technology

Application Software

ADDED

Lion Electric Company (TSX:LEV)

Industrial

Construction Machinery & Heavy Trucks

ADDED

Peyto Exploration & Development Corp. (TSX:PEY)

Energy

Oil & Gas Exploration & Production

ADDED

Park Lawn Corporation (TSX:PLC)

Consumer Discretionary

Specialized Consumer Services

ADDED

Paramount Resources Ltd (TSX:POU)

Energy

Oil & Gas Exploration & Production

ADDED

Secure Energy Services Inc (TSX:SES)

Energy

Oil & Gas Exploration & Production

ADDED

Topaz Energy Corp. (TSX:TPZ)

Energy

Integrated Oil & Gas

ADDED

Tamarack Valley Energy Ltd. (TSX:TVE)

Energy

Oil & Gas Exploration & Production

DELETED

OrganiGram Holdings Inc. (TSX:OGI)

Health Care

Pharmaceuticals

DELETED

Real Matters Inc. (TSX:REAL)

Real Estate

Real Estate Services

DELETED

SunOpta Inc (TSX:SOY)

Consumer Staples

Biotechnology

DELETED

Westport Fuel Systems Inc. (TSX:WPRT)

Industrials

Construction Machinery & Heavy Trucks

For more information about S&P Dow Jones Indices, please visit www.spdji.com

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has become home to over 1,000,000 indices across the spectrum of asset classes that have helped define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.

SOURCE S&P Dow Jones Indices LLC.

For further information: S&P Dow Jones Indices, index_services@spglobal.com

Related Links

http://www.standardandpoors.com

Hut 8 Mining Provides Production Update for November 2021

TORONTODec. 2, 2021 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, is pleased to provide the following corporate update.  All dollar figures are in Canadian Dollars unless otherwise stated.

Mining Production Highlights for November 2021:

  • 265 Bitcoin were mined, resulting in an average production rate of 8.83 Bitcoin per day.
  • 100% of the self-mined Bitcoin for the month of November were deposited into custody, consistent with Hut 8’s Hodl strategy.
  • Total Bitcoin balance held in reserve is 5,242 as of November 30, 2021.

Mining Equipment Deployment Update for November 2021:

During November 2021, the Company completed the deployment of high-performance NVIDIA chips at Hut 8’s site in Medicine Hat, Alberta. The Company has deployed the NVIDIA CMPs to mine the Ethereum network via Luxor pool, and consistent with its Hodl strategy, is receiving payouts in Bitcoin. Based on current mining economics this equates to approximately 1.8 – 2.0 additional Bitcoin per day. Hut 8 currently has an installed hashrate of approximately 1.7 EH/s, which includes the converted hashrate from its fleet of CMPs.

“Our NVIDIA CMP deployment is contributing revenue of approximately $140,000 per day, based upon current mining economics,” said Jason Zaluski, Head of Technology for Hut 8. “Given the low power intensity of these chips, our cost per Bitcoin of approximately $3,000 means we are achieving unit margins in excess of 95%.”

About Hut 8:

Hut 8 is one of North America’s largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. Located in energy rich Alberta and North Bay, Ontario, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any crypto miner or publicly traded company globally. Hut 8 is executing on its commitment to mining and holding Bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of Bitcoin’s market direction. The Company’s multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on ESG alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

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 the Company 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 Company’s businesses, 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”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions and includes, among others, statements regarding Bitcoin network dynamics, Bitcoin and Ethereum mining economics, the Company’s trajectory to produce additional Bitcoin, the profitability of GPU mining and costs associated with mining digital assets.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully, and you should not place undue reliance on any forward-looking statements. There can be no assurance that such estimates and assumptions will prove to be correct. 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 alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or circumstances, or otherwise, except as required by law.

Related Links: www.hut8mining.com

SOURCE Hut 8 Mining Corp

For further information: Media Contact: Hut 8, dea.masottipayne@northstrategic.com

Hut 8 Announces Change of Auditor

TORONTONov. 30, 2021 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company“), announces that its board of directors (the “Board“) has approved a change of the Company’s auditor. The Company’s former auditor, Dale Matheson Carr-Hilton Labonte LLP (the “Former Auditor” or “DMCL“), has resigned on its own initiative prior to the expiry of their term in office, effective as of November 16, 2021. The Board and the audit committee of the Board (the “Audit Committee“) have appointed Raymond Chabot Grant Thornton LLP (the “Successor Auditor” or “Raymond Chabot Grant Thornton“) as the successor auditor of the Company, effective as of November 30, 2021.

“We are grateful for the services provided by DMCL since first engaging with the Company in 2018” said Shane Downey, Chief Financial Officer of Hut 8.” We look forward to a smooth transition with the Raymond Chabot Grant Thornton team and continuing to deliver on our objectives.”

There were no disagreements or unresolved issues with the Former Auditor on any matter of the audit scope or procedures, accounting principles or policies, or financial statement disclosure. There have been no “reportable events” (as defined in National Instrument 51-102 – Continuous Disclosure Obligations) between the Company and the Former Auditor. The Former Auditor did not provide a modified opinion in their auditor’s report for the financial statements of the Company fiscal years ended December 31, 2020 and 2019.

A Notice of Change of Auditor (the “Notice“), together with the response letters from the Former Auditor and Successor Auditor have been reviewed by the Audit Committee and the Board and have been filed on www.sedar.com.

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 the Company 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 Company’s businesses, 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”, “believe”, “estimate”, “expect” or similar expressions and includes, among others, statements regarding the anticipated transition between auditors.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information  Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. 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 alter 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Hut 8:

Hut 8 is a digital asset mining company with industrial-scale operations in Alberta, Canada. The Company is one of North America’s largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. Located in energy rich Alberta, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any publicly traded company globally. Hut 8 is executing on its strategy of mining and holding Bitcoin, while building a diversified business and revenue strategy to grow and protect shareholder value, regardless of Bitcoin price action. The Company’s multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on Environmental, Social and Governance (“ESG”) standards alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

SOURCE Hut 8 Mining Corp

For further information: Media Contact: Hut 8, dea.masottipayne@northstrategic.com

Hut 8 Joins D.A. Davidson 2021 FinTech and Payment Spotlight Conference

TORONTO, Nov. 29, 2021 /CNW/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, is pleased to be joining the D.A. Davidson 2021 FinTech and Payment Spotlight Conference.

On December 2, 2021, Hut 8 Executives will virtually join the D.A. Davidson 2021 FinTech and Payment Spotlight Conference, with representation from companies across the FinTech landscape, to discuss the outlook for the industry.

About Hut 8:

Hut 8 is one of North America’s largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. With two sites located in energy rich Alberta and a third site in North Bay, Ontario Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any crypto miner or publicly traded company globally. Hut 8 is executing on its commitment to mining and holding Bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of Bitcoin’s market direction. The Company’s multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on ESG alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

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 the Company 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 Company’s businesses, 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”, “believe”, “estimate”, “expect” or similar expressions and includes, among others, statements regarding Bitcoin network dynamics, geo-political impacts, the Company’s trajectory to produce additional Bitcoin, the build-out of a third facility, the expected timing of equipment deliveries, and planned investments for the balance of 2021.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. 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 alter 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Related Links
www.hut8mining.com

SOURCE Hut 8 Mining Corp

For further information: Media Contact: Hut 8, dea.masottipayne@northstrategic.com

Hut 8 Achieves Third Consecutive Record-Breaking Quarterly Revenue in Q3-2021; Surpasses 5,000 Bitcoin Held in Reserve

TORONTO, ON, November 11, 2021 — Hut 8 Mining Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, is pleased to announce its financial results for the quarter ending September 30, 2021 (“Q3-2021”).  All dollar figures are in Canadian Dollars (“CAD”), unless otherwise stated.

“The third quarter of 2021 proved to be another exciting and dynamic step forward for Hut 8,” commented Shane Downey, Chief Financial Officer of the Company. “We are thrilled to have reported our third consecutive record-breaking quarterly results and to have already surpassed our goal of 5,000 Bitcoin held in reserve. Further, we have achieved an important milestone with final delivery of all 10,000 NVIDIA chips. Throughout early weeks of operation, these cutting-edge GPUs have proven to be highly efficient, mining at a total cost of under $3,000 per Bitcoin, delivering margins of approximately 95%.”

HASHRATE UPDATE

Hut 8 currently has an installed hashrate of approximately 1.7 EH/s, which includes the converted hashrate from our fleet of NVIDIA GPUs.

Our total current and contracted capacity stands at approximately 4.5 EH/s, which includes the converted hashrate from our fleet of NVIDIA GPUs.

BITCOIN INVENTORY AND VALUE

As of September 30, 2021, the Company had a total Bitcoin balance of 4,729 with a market value of $263.8 million. Hut 8’s Bitcoin balance as of November 10, 2021, including 2,000 Bitcoin loaned as part of the Company’s fiat yield strategy, is approximately 5,053 Bitcoin, reflecting a market value of approximately $430 million. Hut 8 continues to strategically emphasize its “HODL” strategy, taking active steps to generate Canadian and US dollars to help fund operating expenses, so as to avoid selling Bitcoin.  During Q3-2021, 100% of self-mined Bitcoin was deposited into custody.

Q3-2021 HIGHLIGHTS

  • Third consecutive record quarterly revenue, hitting $50.3 million in Q3-2021, with our self-mining operations generating $47.9 million of revenue and our expanded hosting service generating $2.4 million. We mined 905 Bitcoin in Q3-2021, all of which was added to our self-mined Bitcoin balance.
  • As of November 10, 2021, the entire fleet of high-performance NVIDIA chips has been received at Hut 8’s site in Medicine Hat, Alberta, and 91% of the servers have been installed and powered up, with full deployment expected in the next week. The addition of the NVIDIA GPUs serves to increase Hut 8’s aggregate operating rate by approximately 1,600 Gigahash, which based on current network dynamics, equates to an ASIC hashrate of approximately 325 PH/s. The Company has deployed the NVIDIA GPUs to mine the Ethereum network via Luxor pool, and consistent with our HODL strategy, is receiving payouts in Bitcoin. Based on current mining economics this equates to approximately 1.8 – 2.0 Bitcoin per day, with an average cost to mine each Bitcoin of less than $3,000, making this NVIDIA GPU fleet the most profitable portion of Hut 8’s self-mining operation.
  • Following its successful listing on The Nasdaq Global Select Market (“Nasdaq”), the Company benefitted from its access to an increased pool of investors and closed a public offering of common shares on September 17, 2021, raising gross proceeds of $220 million (US$173 million). The Company anticipates the proceeds will be used to support the growth of its business including to fund capital investments in digital asset mining equipment in order to increase mining capacity, for working capital, other general corporate purposes, and potentially for strategic partnerships, joint ventures, or acquisitions.
  • Based upon the capital flexibility afforded by the Company’s public offering of equity securities in September 2021, Hut 8 executed on a US$58.7 million purchase of 12,000 new MicroBT M30S, M30S+ and M30S++ miners, representing a cost of approximately $50/Terahash, with aggregate incremental production of 1.17 EH/s. The miners are expected to be delivered starting in January 2022, at a delivery rate of approximately 1,000 machines per month, with full deployment anticipated by December 2022.
  • On October 23, 2021, the Company announced that development of its third mining site, in conjunction with Validus Power Corp. (“Validus), was underway in North Bay, Ontario, Canada. This site will begin with 35MW of capacity and expected to be online by the end of December 2021. Power will be available on a physical off-take basis under the Company’s power purchase agreement with Validus, with a power rate of $0.0274/kWh subject to an annual adjustment mechanism.

OPERATING AND FINANCIAL OVERVIEW

  • Revenue for Q3-2021 increased significantly to $50.3 million compared to $5.8 million in the prior year period. Strong mining economics generated $47.9 million of revenue as a result of 905 Bitcoin mined versus $5.3 million of revenue and 372 Bitcoin mined in the prior year period. Our hosting services contributed $2.4 million of revenue compared to $0.5 million in the prior year period, reflecting management’s strategic decision to on-board two hosting customers.
  • Site operating costs for Q3-2021 totaled $16.0 million versus $7.5 million in the prior year period. The increase reflects power consumption from increased hash rate, and the fact that mining equipment was operating at reduced capacity for much of the third quarter of 2020, in response to compressed self-mining economics.
  • Net income in Q3-2021 was $23.4 million. The large increase in net income was primarily driven by the revenue generated from the improved performance in our self-mining operations, partially offset by higher costs from the expansion of our business.
  • Adjusted EBITDA (a “Non-IFRS Measure”, please refer below) in Q3-2021 was $30.7 million, versus an Adjusted EBITDA loss of $2.5 million in the prior year period, driven by the expansion of Hut 8’s operations and the improvement in Bitcoin mining economics.
  • Digital assets consist of Bitcoin, which had a self-mined balance of 4,729 Bitcoin and a market value of $263.8 million as of September 30, 2021. This balance consisted of 2,729 Bitcoin held in custody and 2,000 held under lending arrangements.

NON-IFRS MEASURES

This press release makes reference to certain measures that are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore not necessarily comparable to similar measures presented by other companies. The Company uses non-IFRS measures including “Adjusted EBITDA” and “Mining Profit” as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from Management’s perspective.

“Adjusted EBITDA” represents EBITDA (net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization) adjusted to exclude non-cash share-based compensation, fair value gain or loss on revaluation of digital assets, non-recurring impairment charges or reversals of impairment, and costs associated with one-time or non-recurring transactions. Adjusted EBITDA is used to assess profitability without the impact of non-cash accounting policies, capital structure, taxation, and one-time or non-recurring transactions. This performance measure provides a consistent comparable metric for profitability of the Company across time periods.

“Mining profit” represents gross profit (revenue less cost of revenue), excluding depreciation and revenue and site operating costs directly attributable to hosting. Mining profit show profitability of the Company’s core digital asset mining operation, without the impact of non-cash depreciation expense.

The following table reconciles net income (loss) to our non-IFRS measure, Adjusted EBITDA:

The following table reconciles gross profit to our non-IFRS measure, Mining profit:

CONFERENCE CALL

Hut 8 Mining Q3 conference call will commence at 10:00 a.m. ET, today, November 11, 2021. Those wishing to join via telephone should dial in 5 minutes early to the number below using the confirmation number 50245577:

  • 1 (866)-215-5508 Canada Toll Free
  • For those joining from outside of Canada, a current list of available local and international freephone telephone numbers can be found here:

International Dial In Numbers

Analyst Coverage of Hut 8 Mining:

A full list of Hut 8 Mining analyst coverage can be found here:

https://hut8mining.com/investors/

 

 

 

 

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 the Company 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 Company’s businesses, 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”, “believe”, “estimate”, “expect” or similar expressions and includes, among others, statements regarding the anticipated expansion of the current installed hashrate, the Company’s trajectory to produce additional Bitcoin, planned investments for the balance of 2021 geopolitical impacts and the build-out of a new power facility.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Company’s Annual Information  Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. 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 alter 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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

ABOUT HUT 8

Hut 8 is a digital asset mining company with industrial-scale operations in Alberta, Canada.  The Company is one of North America’s largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. Located in energy rich Alberta, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any publicly traded company globally. Hut 8 is executing on its strategy of mining and holding Bitcoin, while building a diversified business and revenue strategy to grow and protect shareholder value, regardless of Bitcoin price action. The Company’s multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on Environmental, Social and Governance (“ESG”) standards alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

MEDIA CONTACT

dea.masottipayne@northstrategic.com