Mr. Andrew Kiguel reports

HUT 8 ANNOUNCES CLOSING OF SHARE ISSUANCE

Hut 8 Mining Corp., further to its previously announced purchase of 12 BlockBox AC data centres from Bitfury Holding BV on Nov. 12, 2019, and Feb. 26, 2019, has issued 838,511 common shares of the company to Bitfury, at a share price of $3.15 per common share in settlement of $2-million (U.S.) of the $13-million (U.S.) purchase price. The $2-million (U.S.) cash payment for the 12 BlockBox AC data centres has been settled and the $9-million (U.S.) loan from Bitfury took effect on Jan. 1, 2019. The loan is unsecured, carries a 12-per-cent coupon and has a 24-month term for the first $6-million (U.S.). The balance will be repaid at the earlier of maturity date of the Galaxy Digital loan already outstanding or such date as the Galaxy Digital loan is repaid early. There are no additional fees and no penalty for prepayment.

About Hut 8 Mining Corp.

Hut 8, headquartered in Toronto, Canada, is a cryptocurrency mining company established through an exclusive arrangement with the Bitfury Group, the world's leading full-service blockchain technology company. Through the Bitfury Group, Hut 8 has access to a world-leading proprietary mix of hardware, software and operational expertise to construct, optimize and manage data centres in low-cost and attractive jurisdictions.

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