Ms. Jaime Leverton reports

HUT 8 PROVIDES UPDATE ON BUSINESS COMBINATION WITH USBTC

Hut 8 Mining Corp. continues to make progress on the proposed business combination pursuant to which Hut 8 and U.S. Data Mining Group Inc. (doing business as U.S. Bitcoin Corp. (USBTC)) will combine in an all-stock merger of equals. The combined company will be named Hut 8 Corp. (New Hut) and will be a United States-domiciled entity. The transaction is expected to establish New Hut as a large-scale, publicly traded bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading environmental, social and governance (ESG) practices.

New Hut has filed an amendment to its Form S-4 registration statement with the U.S. Securities and Exchange Commission (SEC). As disclosed in the amended registration statement:

• New Hut's expected installed self-mining capacity has increased from the previously disclosed 5.6 exahashes/second to 7.02 EH/s at mining facilities in Medicine Hat and Drumheller, Alta.; Niagara Falls, N.Y.; Kearney, Neb.; and Granbury and King Mountain, Tex., upon the close of the transaction. The improvement is due to the energization of additional miners at USBTC's sites.
  • The 1.7 EH/s installed self-mining capacity at the King Mountain, Tex., site is owned by the King Mountain joint venture in which USBTC has a 50-per-cent membership interest alongside a leading energy partner.
• On April 7, 2023, USBTC entered into a settlement with the City of Niagara Falls which concluded all claims related to the continuing litigation with the city and terminated the temporary restraining order against USBTC. USBTC was required to pay the City of Niagara Falls a $100,000 compliance fee and contribute $180,000 to the city's attorney's fees.
  • USBTC is currently working with city officials to confirm safety procedures prior to resuming mining activity.

"Since announcing the transaction, we have made measurable progress on key files that will positively position New Hut to be very competitive in the market with 7.02 EH/s of self-mining capacity," said Jaime Leverton, chief executive officer of Hut 8. "In addition, we will have flexibility for growth in new fiat revenue lines of business, including hosting and managed infrastructure operations, allowing us to amplify our diversification strategy, which will ultimately prove to be prescient well beyond the next halving."

Completion of the transaction remains subject to the remaining regulatory approvals, shareholder approval, court approval and other customary closing conditions of the transaction.

About Hut 8 Mining Corp.

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.

We seek Safe Harbor.