TORONTO, ON, November 22, 2019 – Hut 8 Mining Corp. (“Hut 8” or “the Company”) (TSX: HUT) (OTCQX: HUTMF), one of the world’s largest public cryptocurrency mining companies by operating capacity and market capitalization, today announced that it has refinanced its existing credit facility with a new loan with Genesis Global Capital (“Genesis”). A new US$15 million credit facility with Genesis (“Loan”) will replace and terminate a previous US$14 million loan with Galaxy Digital Lending. The terms of the new Loan are a fixed 9.85% coupon per annum with an 18 month term with a bullet repayment.
“This refinancing is a major step in improving Hut 8’s cash flows and will reduce our interest costs by $426k (US$323k) per year,” said Jimmy Vaiopoulos, Chief Financial Officer of Hut 8. “Our ability to refinance debt on better terms is a testament to our performance and ability to stand out as a low cost bitcoin miner”.
“Utilizing lower interest rates as part of this refinancing, holding a significant bitcoin balance, and cash on hand, our balance sheet continues to be a distinct advantage for Hut 8,” said Andrew Kiguel, Chief Executive Officer of Hut 8.
In addition, Hut 8 switched mining pool services from Slushpool to the Bitfury Group in December 2018. This has allowed for significant cost savings as we moved to a fixed fee of US$226k (US$200 per month per BlockBox Data Center AC) at current bitcoin prices from a 2% fee of all revenues which was nearly $1 million for the 2018 year.
Since beginning its mining operations in December 2017, Hut 8 has mined over 12,305 bitcoins up to the latest quarter ending September 30, 2019. Hut 8’s current capital structure consists of 90,438,009 common shares outstanding, 2,882,222 warrants and 900,000 options.
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, inclusive of Bitfury Holding BV, one of the world’s leading full-service hardware and software blockchain technology companies. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 94 BlockBox AC data centers with operating capacity of approximately 110 MW and 963 PH/s, subsequent to the close of an additional 9 Blockboxes AC data centers expected in November 2019.
Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company’s common shares are listed under the symbol “HUT” on the TSX and as “HUTMF” on the OTCQX Exchange.
Key investment highlights and FAQ’s: https://www.hut8mining.com/investors.
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Hut 8 Corporate Contact:
Chief Executive Officer
Tel: (647) 256-1992
Chief Financial Officer
Tel: (647) 256-1992
Tel: (778) 955-8012
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events.
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 Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at 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 TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.