Mr. Asher Genoot reports

HUT 8 ADVANCES CAPITAL STRATEGY WITH DIFC LICENSE

Hut 8 Corp.'s subsidiary, Hut 8 Investment Ltd., has secured a commercial licence in the Dubai International Financial Centre. The licence authorizes proprietary investments and certain non-financial commercial activity under the DIFC's legal and regulatory framework, which is based on international standards and principles of common law.

The DIFC licence represents a structural expansion of Hut 8's capital strategy, enhancing the company's ability to deploy bitcoin held in reserve into structured derivatives strategies. The licence is expected to broaden access to institutional counterparties, reduce trading friction and lower transaction costs. In fiscal year 2024, Hut 8 generated more than $20-million in net proceeds from covered call options premiums on bitcoin held in reserve. Through its presence in the DIFC, Hut 8 expects to unlock multiple advantages that support continued expansion of its active treasury management program, including:

• Direct access to global derivatives markets: enables Hut 8 to trade directly on institutional exchanges, reducing reliance on over-the-counter intermediaries that historically introduced cost friction relative to spot pricing;
• Broader access to institutional-grade products and counterparties: unlocks a wider set of global liquidity providers and instruments, enhancing strategic optionality;
• Greater flexibility in structured strategy design and execution: allows Hut 8 to construct and manage advanced yield strategies that would be more difficult to execute without a DIFC licence;
• Supportive regulatory environment within a common law framework: Dubai offers an established legal and regulatory foundation for institutional digital asset activity, supporting enhanced enforceability, compliance certainty and jurisdictional alignment.

"We believe that securing a DIFC licence enhances our ability to drive outsized shareholder returns through our integrated capital strategy," said Asher Genoot, chief executive officer of Hut 8. "It allows us to execute directly on global derivatives markets, reduce trading costs and access a broader range of institutional products. Within a regulatory environment that supports structured digital asset strategies, we believe we can manage bitcoin held in reserve more efficiently, manage risk with greater precision and optimize yield through disciplined, pro-active management."

About Hut 8 Corp.

Hut 8 is an energy infrastructure platform integrating power, digital infrastructure and compute at scale to fuel next-generation, energy-intensive use cases such as bitcoin mining and high performance computing. It takes a power-first, innovation-driven approach to developing, commercializing and operating the critical infrastructure that underpins the breakthrough technologies of today and tomorrow. Its platform spans 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada: five bitcoin mining, hosting and managed service 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 non-operational site in Alberta.

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