Mr. Asher Genoot reports

HUT 8 ANNOUNCES EARLY PAYOFF OF OUTSTANDING LOAN

Hut 8 Corp. has converted the entire approximately $38-million outstanding balance of its subsidiary's outstanding loan with Anchorage Lending CA LLC, a subsidiary of Anchor Labs Inc., doing business as Anchorage Digital, into common stock of the company.

"Hut 8 stands out for its conviction to innovation -- it's a key reason that we originally backed them with a loan and it's the same reason we've now converted that debt to equity," said Nathan McCauley, co-founder and chief executive officer of Anchorage Digital. "In an evolving market, Hut 8 has proven that they can adapt to meet the moment and come out stronger -- for the benefit of the company and the digital asset ecosystem at large. We value that kind of resilience on our balance sheet, and our new ownership stake makes that clear."

"Our relationship with Anchorage Digital has been instrumental to our growth," said Asher Genoot, chief executive officer of Hut 8. "We are grateful for their continued support as we scale and diversify our business while maintaining an unwavering focus on disciplined and creative capital deployment.

"With a strengthened balance sheet and decreased leverage, we believe we are even better positioned to advance discussions with prospective counterparties and execute on the development of next-generation mining and AI [artificial intelligence] data centres."

Key transaction terms

Anchorage Digital has converted the approximately $38-million outstanding balance of the loan at a price of $16.395 per share of common stock of Hut 8 pursuant to a debt repayment agreement. The share price represents a 51-per-cent premium to the 20-day VWAP (volume-weighted average price) through Sept. 26, 2024, the day prior to the signing of the debt repayment agreement.

Upon completion of the conversion, the outstanding loan and all other related obligations of the company and its subsidiaries have been satisfied.

Additional information, including the debt repayment agreement, is available in the Form 8-K that the company will file with the U.S. Securities and Exchange Commission.

Coming conferences and events

• Oct. 7 to Oct. 9, 2024 -- Yotta 2024;
• Oct. 15, 2024 -- USC Marshall Energy Business Summit 2024;
• Nov. 13 to Nov. 14, 2024 -- Cantor Fitzgerald Crypto, Digital Assets & AI Infrastructure Conference 2024;
• Nov. 19, 2024 -- Craig-Hallum 15th Annual Alpha Select Conference;
• Nov. 19, 2024 -- Benzinga Future of Digital Assets Conference 2024.

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 has a portfolio comprising 20 sites: 10 bitcoin mining, hosting and managed services sites in Alberta, New York and Texas; five high performance computing data centres in British Columbia and Ontario; four power generation assets in Ontario; and one newly announced site in the Texas panhandle.

We seek Safe Harbor.