Ms. Jaime Leverton reports

HUT 8 PROCEEDING WITH FULL MINING OPERATIONS PLAN TO PROVIDE MANAGED SERVICES TO IONIC DIGITAL IN CONNECTION WITH CELSIUS NETWORK LLC BANKRUPTCY PROCEEDINGS

Hut 8 Corp. has signed a four-year agreement with Ionic Digital to provide end-to-end managed services across all of its bitcoin mining operations. The agreement includes Ionic's four existing sites in Midland, Tex., and the development and operation of its Cedarvale site located in Ward county, Texas, which is designed to reach approximately 240 MW (megawatts). Hut 8 will also continue to host approximately 8,500 Ionic Digital miners at Hut 8's Alpha site in Niagara Falls, N.Y.

"Our managed services offering is distinct within the industry and ultimately differentiated Hut 8 as the best partner to manage Celsius's mining operations through Ionic Digital," said Jaime Leverton, chief executive officer of Hut 8. "We have been designing Ionic's Cedarvale site since signing the interim management agreement in December and are thrilled to have construction under way and be actively managing the company's mining operations."

Hut 8 is providing end-to-end managed services for Ionic Digital's operations, including the design and development, engineering, financial modelling, budgeting, accounting, construction management, procurement, logistics, and RFP (request for proposal) co-ordination at its Cedarvale site. It is expected that when construction is complete, Hut 8 will oversee approximately 127,000 miners with nameplate hashrate of approximately 12 EH/s (exahashes per second) and more than 300 MW of energy infrastructure in year 1 of the managed services agreement.

Under the agreement, Hut 8 is expected to earn an aggregate of $81,504,800 in cash payments in addition to reimbursement for direct passthrough operating expenses. The four-year agreement includes a milestone to extend to a five-year agreement if key targets are met. If the term extension is triggered, Hut 8 is expected to earn $101,881,000, in addition to reimbursement for direct pass-through operating expenses. In addition to the fees payable pursuant to the mining services agreement, Hut 8 expects to receive the following equity interests as compensation under the agreement: (i) up to 1.59405 per cent in restricted Ionic Digital common stock, with 0.31881 per cent of Ionic Digital stock vesting annually, provided that the last tranche of 0.31881 per cent of stock will not vest if the agreement is not extended for the fifth year; and (ii) warrants to purchase up to 1.59405 per cent of Ionic Digital common stock, with each tranche of 0.31881 per cent Ionic Digital stock granted at the end of each year of the agreement, provided that the last tranche of 0.31881 per cent of Ionic Digital stock will not be granted if the agreement is not extended for the fifth year.

Hut 8 has also entered into a contribution agreement with Ionic Digital, pursuant to which Hut 8 has acquired 374,261 shares of Ionic Digital common stock in exchange for a cash payment of $6,378,000. Pursuant to the contribution agreement, Hut 8 will be required to acquire a further 374,261 shares of Ionic Digital common stock for a cash payment of $6,378,000 on the earlier of: (i) May 31, 2024; and (ii) the date on which Ionic Digital's registration statement of Form 10 is declared effective by the United States Securities and Exchange Commission.

Hut 8 has also been provided with certain customary investor rights, including, for so long as the agreement is in effect, the right to appoint two directors to the board of Ionic Digital, one of which will be assumed by Asher Genoot, president of Hut 8.

Ionic Digital will be a well capitalized industrial mining company. Under the Celsius Chapter 11 plan, Ionic Digital was valued at approximately $740-million on a net asset basis and will be vested with substantially all of the Celsius mining assets. Additionally, under the Celsius plan, Ionic will receive $225-million in cash (subject to certain adjustments) and have no debt.

About Hut 8 Corp.

Through innovation, imagination and passion, Hut 8's seasoned executive team is bullish on creating value at the intersection of infrastructure and energy through bitcoin mining and hosting, groundbreaking managed services, energy arbitrage, operating traditional data centres, and capitalizing on emerging technologies like artificial intelligence and machine learning. Headquartered in Miami, Fla., Hut 8's infrastructure portfolio includes 11 sites: five high-performance computing data centres across British Columbia and Ontario that offer cloud, co-location, artificial intelligence, machine learning and VFX rendering computing solutions, and six bitcoin mining, hosting and managed services sites located in Alberta, New York, Nebraska and Texas. Long distinguished for its unique treasury strategy, Hut 8 has one of the highest inventories of self-mined bitcoin of any publicly traded company globally.

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