Mr. Asher Genoot reports

HUT 8 OPERATIONS UPDATE FOR MARCH 2024

Hut 8 Corp. has released its operations update for March, 2024.

"March was another productive month in our postmerger restructuring program," said Asher Genoot, chief executive officer of Hut 8. "We continue to make the changes required for profitable, long-term growth."

"On March 6, we announced the closure of Drumheller. Our team relocated efficient miners to Medicine Hat and retired inefficient miners. We expect to see the impact of these changes on our operating efficiency moving forward.

"We also made significant progress on our new Salt Creek site and expect to fully energize the site in April, less than three months after breaking ground. We removed our miners from Kearney and Granbury and are relocating them to our owned sites, Salt Creek and Alpha, to be energized. While this decreased our deployed hashrate and bitcoin production during the month, it gives us the crucial ability to maintain full control of our fleet and drive down our energy costs going into the halving.

"Lastly, site-level operating responsibilities transitioned to the new owner of Kearney and Granbury and we continue to transition ownership of all other activities at those sites. Under our agreement, we expect to continue generating revenue at these sites until the agreement is terminated at the end of April, at which point we are entitled to receive an early termination fee of $13.5-million.

"I look forward to sharing more updates on the impact of our restructuring and growth initiatives in the coming months."

Highlights:

• Hut 8 executed a series of strategic measures at Drumheller, closing the site, moving efficient miners to Medicine Hat and retiring inefficient miners.
• Construction of the 63-megawatt Salt Creek site is progressing on schedule, and the Hut 8 team expects to energize miners in April.
• In preparation for the energization of Salt Creek, the company removed all miners hosted at Kearney and Granbury and is relocating them to Salt Creek and Alpha.
• Site-level operating responsibilities at Kearney and Granbury transitioned to the new owner and Hut 8 continues to transition ownership of all other activities.
• At Ionic Digital's Cedarvale site in Ward county, Texas, the Hut 8 team completed the initial phase of construction and is preparing to energize the site.

About Hut 8 Corp.

Hut 8 is an energy infrastructure operator and bitcoin miner with self-mining, hosting, managed services and traditional data centre operations across North America. Headquartered in Miami, Fla., Hut 8's portfolio comprises 18 sites: nine bitcoin mining, hosting and managed services sites in Alberta, New York, Nebraska and Texas, five high-performance computing data centres in British Columbia and Ontario, and four power generation assets in Ontario.

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