HUT Hut 8 Corp

Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today released its operations update for November 2024.

“We achieved net increases in deployed self-mining hashrate and efficiency in November by bringing inefficient miners offline in preparation for our initial fleet upgrade and completing the development of our R&D facility at Salt Creek,” said Asher Genoot, CEO of Hut 8. “These measures partially offset the impact of rising network difficulty on Bitcoin production, and we expect further performance gains in Q1 2025 as our initial fleet upgrade is expected to drive an improvement in average fleet efficiency to 19.9 joules per terahash.”

“We remain intently focused on growing our proprietary operations and have advanced the buildout of our Vega site on schedule for energization in Q2 2025. Accounting for our fleet upgrade and assuming we fully exercise our purchase option for the miners we expect to host at the Vega site, we have a path to approximately 24 exahash per second of self-mining hashrate with an average fleet efficiency of 15.7 joules per terahash as early as Q2 2025. In parallel, we continue to progress AI data center development opportunities across our development pipeline.”

Highlights

• Construction at Vega advancing on track for energization in Q2 2025 (image to left)
• Completed development of R&D facility at Salt Creek to support the Company’s ongoing focus on innovation in data center design and technology
• Progressed AI data center development opportunities across development pipeline

Operating Metrics

Average during the period unless otherwise noted	November 2024	October 2024
Total energy capacity under management (mining)1,2,3,4	967 MW	967 MW
Total deployed miners under management5	201.1K	194.2K
Total hashrate under management6	21.0 EH/s	20.1 EH/s
Self-Mining7
Deployed miners8,12	56.2K	57.1K
Deployed hashrate9	5.7 EH/s	5.6 EH/s
Bitcoin produced3,10	94 BTC	100 BTC
Bitcoin on balance sheet3	9,122 BTC	9,110 BTC
Managed Services2,11
Energy capacity under management3	582 MW	582 MW
Deployed miners under management12	155.8K	146.5K
Hashrate under management	16.4 EH/s	15.5 EH/s
Hosting
Deployed miners under management12,13	75.2K	76.7K
Hashrate under management14	8.4 EH/s	8.5 EH/s

Energy Infrastructure Platform3

				Current/Contracted Revenue Stream(s)15
Site	Location	Owner16	PowerCapacity	Self-Mining	ManagedServices	Hosting	HPC	PowerSales
Vega17	Texas Panhandle	Hut 8	205 MW			Yes18
Medicine Hat	Medicine Hat, AB	Hut 8	67 MW	Yes
Salt Creek	Orla, TX	Hut 8	63 MW	Yes
Alpha	Niagara Falls, NY	Hut 8	50 MW	Yes		Yes
Drumheller19	Drumheller, AB	Hut 8	42 MW
Kelowna	Kelowna, BC	Hut 8	1.1 MW				Yes
Mississauga	Mississauga, ON	Hut 8	0.9 MW				Yes
Vaughan	Vaughan, ON	Hut 8	0.6 MW				Yes
Vancouver II	Vancouver, BC	Hut 8	0.5 MW				Yes
Vancouver I	Vancouver, BC	Hut 8	0.3 MW				Yes
King Mountain20	McCamey, TX	Hut 8 (JV)	280 MW	Yes	Yes	Yes		Yes
Iroquois Falls21	Iroquois Falls, ON	Hut 8 (JV)	120 MW					Yes
Kingston21	Kingston, ON	Hut 8 (JV)	110 MW					Yes
North Bay21	North Bay, ON	Hut 8 (JV)	40 MW					Yes
Kapuskasing21	Kapuskasing, ON	Hut 8 (JV)	40 MW					Yes
Cedarvale2,17	Barstow, TX	Managed	215 MW		Yes
East Stiles2	Midland, TX	Managed	30 MW		Yes
Rebel2	Midland, TX	Managed	25 MW		Yes
Stiles2	Midland, TX	Managed	20 MW		Yes
Garden City2	Midland, TX	Managed	12 MW		Yes
Total			1,322 MW

Upcoming Conferences & Events:

• December 11–12, 2024: Informa Tech: The AI Summit New York, New York City
• December 12, 2024: Northland Capital Markets Growth Conference, Virtual
• January 9–17, 2025: 27th Annual Needham Growth Conference, New York City
• January 19–22, 2025: Pacific Telecommunications Council PTC’25, Honolulu

Notes:

(1)	Energy capacity under management (mining) includes (i) 180 MW of self-mining sites comprised of Alpha, Medicine Hat, and Salt Creek, (ii) 205 MW of hosting capacity at Vega, which is currently under construction, (iii) 280 MW of capacity under management at King Mountain, and (iv) 302 MW from Hut 8’s managed services agreement with Ionic Digital Inc. (“Ionic”), assuming full 215 MW of capacity at Cedarvale, which was first energized in April and is currently under construction.
(2)	On November 26, 2024, Ionic provided notice that it was terminating its managed services agreement with a subsidiary of Hut 8 (the “Manager”) effective December 10, 2024. The Company believes that Ionic’s claims supporting the termination of the managed services agreement are meritless, and the Company will vigorously enforce its rights and the rights of the Manager.
(3)	As of the end of the period.
(4)	Includes 205 MW of capacity at Vega as the site is expected to host miners for BITMAIN.
(5)	Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site.
(6)	Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the King Mountain site.
(7)	Self-Mining operations for Hut 8 include 100% of operations at the King Mountain site.
(8)	Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 47.2K during November and 48.2K during October.
(9)	Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 4.8 EH/s during November and 4.7 EH/s during October.
(10)	Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner was 79 BTC during November and 83 BTC during October.
(11)	Managed services include (i) 280 MW of capacity under management at King Mountain and (ii) 302 MW from Hut 8’s Managed Services agreement with Ionic, assuming full 215 MW of capacity at Cedarvale, which was first energized in April and is currently under construction.
(12)	Miners are rounded to the nearest 100.
(13)	41.1K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8’s joint venture partner during November compared to 42.6K in October.
(14)	4.5 EH/s under management net of Hut 8’s joint venture partner’s 50% share of the King Mountain JV during November compared to 4.7 EH/s during October.
(15)	Reflects revenue sources to Hut 8, its subsidiaries, and/or joint ventures in which they participate.
(16)	Owned denotes ownership of power infrastructure at owned or leased data center locations, except for HPC sites where owned denotes ownership of mechanical and electrical infrastructure at leased data center locations.
(17)	Site is currently under development.
(18)	Anticipated to begin generating revenue by Q2 2025.
(19)	Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site.
(20)	Owned by a JV between Hut 8 and a Fortune 200 renewable energy producer in which Hut 8 has an approximately 50% membership interest.
(21)	Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately 80% membership interest.

About Hut 8 

Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising twenty sites: ten Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. Specifically, such forward-looking information included in this press release includes statements relating to the Company’s planned initial fleet upgrade and the expected resulting performance gains, including expected improvement in average fleet efficiency, its focus on growing its proprietary operations, its buildout and energization of the Vega site, including the expected timing and resulting performance gains, its continuing progress with respect to AI data center development opportunities across its development pipeline and the impact of Ionic’s termination of the managed services agreement.

Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID19 pandemic, climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to mining sites and other risks related to the digital asset mining and data center business. For a complete list of the factors that could affect Hut 8, please see the “Risk Factors” section of Hut 8’s Transition Report on Form 10-K, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.

Hut 8 Corp. Investor RelationsSue Ennisir@hut8.com

Hut 8 Corp. Media Relationsmedia@hut8.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c9236ca1-6918-4b97-b9aa-530c73b90a67