Mr. Asher Genoot reports

HUT 8 OPERATIONS UPDATE FOR SEPTEMBER 2024

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

"We made significant strides in scaling our compute layer across bitcoin mining and AI [artificial intelligence] this month," said Asher Genoot, chief executive officer of Hut 8. "In partnership with Bitmain, we launched a next-generation, DLC-cooled [direct liquid cooling] ASIC [application-specific integrated circuit] miner. We are targeting a 15-exahash-per-second hosting deployment at our Vega site in the Texas panhandle by H1 2025, which is expected to generate [approximately] $135-million in annualized hosting revenue on a fully ramped basis. The agreement's purchase option creates a clear path to 20 exahashes per second of self-mining capacity by allowing us to fully acquire the hosted machines for our fleet. This deal demonstrates our commitment to pushing the mining industry forward while positioning for expansion into AI data centres.

"Our GPU-as-a-service [graphics processing unit] vertical is now fully operational and generating revenue. As we advance discussions with potential partners to expand our digital infrastructure layer across bitcoin mining and AI compute, we remain committed to maintaining balance sheet strength and creative structuring. To that end, we have also enhanced our financial position by fully converting our [approximately] $38-million Anchorage Digital loan into equity at $16.395 per share of common stock, which represents a 51-per-cent premium to the company's 20-day VWAP [volume-weighted average price] through the day prior to the signing of the equitization agreement."

Highlights:

• Announced partnership with Bitmain to host U3S21EXPH ASIC miner in the first half of 2025 with path to 20 exahashes per second of self-mining capacity; partnership is expected to generate approximately $135-million in annualized hosting revenue on a fully ramped basis;
• Brought 1,000 Nvidia H100 GPUs on-line and began generating revenue for new GPU-as-a-service subsidiary Highrise AI Inc.;
• Announced equitization of approximately $38-million Anchorage Digital loan at a price of $16.395 per share;
• Continued construction of Ionic Digital's Cedarvale site and remain on track to complete site buildout by December.

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: 11 bitcoin mining, hosting and managed services sites in Alberta, New York and Texas; five high performance computing data centres in British Columbia and Ontario; and four power generation assets in Ontario.

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