Hut 8 Mining Production and Operations Update for March 2023

Rhea-AI Summary

Hut 8 Mining Corp. reported mining 131 Bitcoins in March 2023, maintaining a significant reserve of 9,133 self-mined Bitcoins, the largest for any publicly traded company. The production rate averaged about 4.2 Bitcoins daily. The company sold 240 Bitcoins in March, which were mined in February. It achieved an installed hashrate capacity of 2.6 EH/s in Alberta and produced 50.38 BTC/EH in March. The mining difficulty rose by 10.67% month-over-month, indicating increased network demand. Hut 8 continues to focus on operational improvements, particularly in Drumheller, Alberta, while closing a transaction with USBTC.

Positive

• Mined 131 Bitcoins in March, totaling 9,133 in reserve.
• Sold 240 Bitcoins in March, indicating strong cash flow.
• Achieved a production rate of approximately 4.2 Bitcoins per day.
• Installed ASIC hashrate capacity at 2.6 EH/s by month-end.
• Produced 50.38 BTC/EH in March, showing efficiency.

Negative

• Increased mining difficulty by 10.67% may raise operational costs.
• Ongoing challenges at the Drumheller site could delay productivity.

 131 Bitcoin mined in March

At 9,133 BTC, Hut 8 continues to hold the largest amount of self-mined Bitcoin in reserve of any publicly-traded company

TORONTO, April 5, 2023 /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 and high performance computing infrastructure provider, mined 131 Bitcoin in the period ending March 31, 2023.

Production highlights for March 2023:

• 131 Bitcoin were generated, resulting in an average production rate of approximately 4.2 Bitcoin per day.
• 240 Bitcoin – all of those produced in February, and part of March – were sold in March 2023.
• Total Bitcoin balance held in reserve as of March 31 is 9,133.
• Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month.
• Hut 8 produced 50.38 BTC/EH in March.
• The difficulty level for mining Bitcoin increased by 10.67% month over month making it more difficult and expensive to mine new blocks and highlighting the growing demand and strength of the Bitcoin network.

Operational highlights:

• We've begun remediation testing at our Drumheller, Alberta site, which continues to be a high priority.
• We hit an all-time operating high of 1.72 EH/s at our Medicine Hat site after energizing approximately 1,000 additional miners transferred from our North Bay site.

"While we met key operational milestones in Medicine Hat in March, we continue to be laser-focused on two things," said Jaime Leverton, CEO of Hut 8. "The entire management team is committed to both remediating the challenges at our Drumheller site, and closing the transaction with USBTC, which remains on track."

About Hut 8

Hut 8 is one of North America's largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high performance computing worlds. With two operational digital asset mining sites located in Southern Alberta, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With over 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. 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", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "predict", "is designed to", "likely" or similar expressions. In addition, any statements in this press release that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information and include, among others, statements regarding: Bitcoin network dynamics; the Company's ability to advance its longstanding HODL strategy; the Company's ability to produce additional Bitcoin and maintain existing rates of productivity at all sites; the Company's ability to deploy additional miners; the Company's ability to continue mining digital assets efficiently; the sale of the Company's Bitcoin production and the proposed use of proceeds from such sale; the Company's plans with respect to the energization of the miners that were removed from the North Bay facility; the Company's expected recurring revenue and growth rate from its high performance computing business; the remediation of the operational issues at the Company's Drumheller facility; the Company's expectations with respect to the closing of the transaction with US Bitcoin Corp.; and the Company's ability to successfully navigate the current market.

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 the Company's mining sites, and other risks related to the digital asset and data centre business. For a complete list of the factors that could affect the Company, please see the "Risk Factors" section of the Company's Annual Information Form dated March 17, 2022, and Hut 8's other continuous disclosure documents which are available on the Company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov.

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. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8's future decisions and actions will depend on management's assessment of all information at the relevant time. 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.

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SOURCE Hut 8 Mining Corp

FAQ

How many Bitcoins did Hut 8 mine in March 2023?

Hut 8 mined 131 Bitcoins in March 2023.

What is the total Bitcoin reserve held by Hut 8?

Hut 8 holds a total reserve of 9,133 Bitcoins.

What was Hut 8's production rate in March 2023?

Hut 8's production rate was approximately 4.2 Bitcoins per day in March.

How much Bitcoin did Hut 8 sell in March 2023?

Hut 8 sold 240 Bitcoins in March 2023.

What is Hut 8's installed hashrate capacity?

Hut 8's installed ASIC hashrate capacity was 2.6 EH/s at the end of March.

What was the mining difficulty change in March 2023 for Hut 8?

The mining difficulty increased by 10.67% month-over-month.