Mr. Asher Genoot reports

HUT 8 ANNOUNCES INITIAL ASIC FLEET UPGRADE

Hut 8 Corp. has completed an initial ASIC fleet upgrade with the purchase of 31,145 Bitmain Antminer S21+ miners. Under the purchase agreement, Hut 8 will acquire the miners at a price of $15 per terahash, with delivery expected in early Q1 2025.

Hut 8 plans to upgrade 111 megawatts (MW) of self-mining capacity across existing sites with a focus on optimizing fleet efficiency and self-mining economics. Upon energization, expected in Q1 2025, the new miners are expected to increase the company's current self-mining hashrate by approximately 3.7 exahashes per second (EH/s) to approximately 9.3 EH/s, an increase of approximately 66 per cent, while driving its average fleet efficiency down from 31.7 to 19.9 joules per terahash (J/TH), an improvement of approximately 37 per cent. Alongside the company's previously announced purchase option for approximately 15 EH/s of hosted U3S21EXPH ASIC miners at its Vega site, this upgrade creates a path to approximately 24 EH/s of self-mining hashrate with an average fleet efficiency of 15.7 J/TH as early as Q2 2025.

"After extensive modelling, we selected the Bitmain Antminer S21+ for our initial fleet upgrade due to its strong return profile relative to higher-efficiency models that require larger capital outlays," said Asher Genoot, chief executive officer of Hut 8. "The S21+ offers a faster payback period than more efficient models across a wide band of future hashprice scenarios, enabling us to optimize investment returns and accelerate value creation."

"Deep, strategic partnerships across the value chain are central to our approach to building a next-generation energy infrastructure platform. This purchase builds on our previously announced approximately 15 EH/s partnership with Bitmain to host the U3S21EXPH ASIC miner and we look forward to further developing our relationship with Bitmain and other partners as we focus on disciplined, creatively structured growth across bitcoin mining and AI compute infrastructure."

As part of its long-term power-first strategy, Hut 8 continues to scale its compute layer across energy-intensive technologies, including both bitcoin mining and AI compute, with the aim of maximizing returns on its portfolio of power assets and digital infrastructure.

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.

We seek Safe Harbor.