Hut 8 and Bitfury BV agree to terminate Investor Rights Agreement
On July 2, 2021, Hut 8 Mining Corp announced the termination of its Investor Rights Agreement with Bitfury BV. This decision concludes Bitfury's right to nominate a board member for Hut 8, although the resignation of the current nominee, Jeremy Sewell, will be effective by December 31, 2021. Hut 8 remains one of North America's largest digital asset miners and is committed to Bitcoin mining and holding, with a diversified business strategy aimed at protecting shareholder value.
- Termination of the Investor Rights Agreement may allow for more independent board decisions.
- Hut 8 holds more self-mined Bitcoin than any other crypto miner globally, enhancing its market position.
- Termination of the agreement might lead to governance uncertainties until a new board composition is established.
TORONTO, July 2, 2021 /PRNewswire/ - Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) ("Hut 8" or the "Company"), one of North America's largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, is pleased to provide the following corporate update.
Today, Hut 8 and Bitfury BV announce their mutual agreement to terminate the historical Investor Rights Agreement ("IRA") between the two companies. The years of collaboration have enabled a strong partnership for both companies and have led to the advancement of bitcoin mining in Canada. The termination of the IRA will most notably bring to a close Bitfury's right to a nominee on Hut 8's Board effective immediately. Notwithstanding the foregoing, to enable time for the Hut 8 Board to transition, Hut 8 has agreed to allow for the delayed resignation of Bitfury's former nominee Jeremy Sewell, until December 31, 2021.
About Hut 8:
Hut 8 is one of North America's largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. Located in energy rich Alberta, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any crypto miner or publicly traded company globally. Hut 8 is executing on its commitment to mining and holding Bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of Bitcoin's market direction. The Company's multi-pronged business strategy includes profitable digital asset mining, white-label high-performance compute hosting, as well as yield & income programs leveraging its Bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market. Hut 8's team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on ESG alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.
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 the Company 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 Company's businesses, 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", "believe", "estimate", "expect" or similar expressions and includes, among others, statements regarding the anticipated expansion of the current installed hashrate, the Company's trajectory to produce additional Bitcoin, planned investments for the balance of 2021, the expected timing of equipment purchase from Bitfury, and the expected incremental production of Bitcoin resulting therefrom, the build-out of a 100 MW facility and the anticipated readiness of the initial 35 MW portion of such facility.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the "Risk Factors" section of the Company's Annual Information Form dated March 25, 2021, which is available on www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Hut 8 Mining Corp
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