Mr. Asher Genoot reports

HUT 8 FULLY COMMERCIALIZES 1 GW BEACON POINT AI DATA CENTER CAMPUS WITH SECOND 352 MW IT LEASE, BRINGING CAMPUS-LEVEL BASE-TERM CONTRACT VALUE TO $19.6 BILLION

Hut 8 Corp. is commercializing the second phase of its one-gigawatt Beacon Point data centre campus in Nueces county, Texas, through a second 15-year, $9.8-billion lease for 352 megawatts (MW) of IT capacity. The tenant, the high-investment-grade company that executed the phase 1 lease, has doubled its contracted IT capacity at the campus to 704 MW. The transaction fully commercializes the Beacon Point campus against its 1,000 MW of utility capacity, secured under an interconnection agreement with AEP Texas for electric delivery service.

Transaction highlights

• Lease structure: triple net (NNN) lease executed on substantially the same terms as the phase 1 lease;
• Tenant profile: high-investment-grade company; the phase 1 tenant;
• Compute architecture: Hut 8 to deliver a second 352 MW AI (artificial intelligence) factory designed to Nvidia's DSX reference architecture for gigawatt-scale AI infrastructure supported by 500 MW of utility capacity;
• Base-term contract value: $9.8-billion over a 15-year base lease term, inclusive of a 3.0-per-cent annual base rent escalator; base-term contract value for the full 1,000 MW campus rises to $19.6-billion;
• NOI contribution: expected cumulative NOI contribution of $9.8-billion over the base term, or an average of $655-million per year upon stabilization; average annual NOI for the full 1,000 MW campus rises to $1.31-billion;
• Upside economics: three five-year renewal options per lease increase potential campus-level contract value to $50.2-billion if all options are exercised;
• Delivery timeline: initial phase 2 data hall delivery expected in Q2 2028.

Full commercialization driven by power-first development model

With the transaction, Beacon Point becomes Hut 8's first fully commercialized AI data centre campus. The company secured the site, contracted the campus in full with investment-grade cash flows, financed phase 1 with investment-grade debt and commenced construction. Together, these stages demonstrate structural features of the company's disciplined, power-first development model, from origination through delivery:

• Power-first underwriting preserves optionality across end markets: Initially underwritten on a speed-to-power thesis to serve Hut 8's affiliated customer, American Bitcoin Corp., Beacon Point is now fully contracted under two 15-year AI leases to a high-investment-grade counterparty.
• First-principles approach to design and partnership supports efficient commercialization: Hut 8 has designed the campus around its tenant's evolving requirements throughout development, including a redesign of the first data hall for phase 1 to Nvidia's DSX reference architecture, enabling 57 per cent more IT capacity within the same land and utility footprint. With this second lease, the tenant doubled its contracted capacity on substantially the same terms.
• Partnership-driven execution model mitigates execution risk: The campus's full 1,000 MW of utility capacity is secured under an interconnection agreement with AEP Texas for electric delivery service, and no incremental capacity is required to serve the phase 2 lease. Hut 8 will implement the partnership-driven model first implemented at River Bend and Beacon Point phase 1 to deliver the site. Site preparation is under way, and long-lead critical equipment has been procured. Initial energization remains on schedule for Q1 2027.

Asher Genoot, chief executive officer of Hut 8, said: "The real test of our power-first approach is what our partners are willing to commit against it. Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive. We took this greenfield site from first lease to full commercialization in just months. That speaks to the quality of the sites we originate, the credibility of our delivery, and the long-term orientation of our partnerships. The opportunity ahead of us is to apply the same model across our development pipeline."

Contracted portfolio highlights

• Contracted capacity: Total contracted IT capacity across Hut 8's AI data centre portfolio of 949 MW, comprising 704 MW at Beacon Point and 245 MW at River Bend.
• Contract value and NOI contribution: Cumulative base-term contract value across Hut 8's AI data centre portfolio of $26.6-billion, with expected average annual NOI of more than $1.75-billion.
• Counterparty credit: 100 per cent of Hut 8's AI data centre portfolio is leased to or backstopped by investment-grade counterparties.

Stock repurchase program

On Dec. 4, 2024, as part of its capital management strategy, the company launched a $250.0-million stock repurchase program with respect to its common stock, par value one cent per share. Under the stock repurchase program, the company may repurchase up to 6,159,439 shares of common stock (representing 5.0 per cent of the current issued and outstanding common stock) in the next 12 months. The company expects that any repurchases will be made through the facilities of Nasdaq at prevailing market prices, in accordance with applicable securities laws.

Additional transaction information and upcoming communications

Hut 8 has made available on its website an investor presentation with further details regarding the transaction.

For important news and information regarding the company, including investor presentations and timing of future investor conferences, visit the investor relations section of the company's website and its social media accounts, including on X and LinkedIn. The company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information.

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 technologies such as AI, high performance computing and ASIC (application-specific integrated circuit) compute. The company develops, commercializes, and operates industrial-scale energy and data centre infrastructure through a power-first, innovation-driven approach.

We seek Safe Harbor.