Ms. Sue Ennis reports

UPDATE ON HUT 8's STALKING HORSE BID FOR FOUR NATURAL GAS POWER PLANTS INCLUDING THE NORTH BAY BITCOIN MINE

Hut 8 Corp. has been informed by KSV Restructuring Inc. (KSV) that the company's previously announced stalking horse bid has been declared the successful bid in accordance with a sale and investment solicitation process (the SISP) carried out by KSV. The stalking horse bid was submitted in partnership with Macquarie Equipment Finance Ltd. (Macquarie), a subsidiary of Macquarie Group Ltd., a global financial services group.

The SISP was conducted in respect of the sale of certain assets of Validus Power Corp. (Validus) and the assets and operations of certain Validus's subsidiaries. If Hut 8's stalking horse bid receives final approval from the Ontario Superior Court of Justice (Commercial List) and is completed in accordance with its terms, a new Ontario subsidiary of Hut 8 (BidCo) will become the owner of the assets of certain Validus entities. Macquarie will receive a minority equity interest in BidCo of approximately 20 per cent and a subsidiary of Hut 8 will be the majority owner with the remaining approximately 80 per cent. On completion of the stalking horse bid, BidCo would acquire, free and clear of any encumbrances (excluding certain permitted encumbrances) four natural gas power plants located in Ontario:

• 40-megawatt facility in Kapuskasing;

• 110-megawatt facility in Kingston;

• 120-megawatt facility in Iroquois Falls;

• 40-megawatt facility and bitcoin mine in North Bay.

Completion of the stalking horse bid would also include a new secured financing arrangement with Macquarie and BidCo in the form of an operating lease facility. The completion of the stalking horse bid is also expected to result in the full and final resolution of all litigation claims and counterclaims currently pending between Hut 8 and certain Validus entities.

Completion of the stalking horse bid is subject to several conditions, including: (i) the Court issuing an approval and vesting order in respect of the stalking horse bid, and (ii) the satisfaction of standard conditions to closing. The company will be seeking final approval of the Court for the stalking horse bid and completion of the stalking horse bid is anticipated to occur in January, 2024.

About Hut 8 Corp.

Through innovation, imagination and passion, Hut 8's seasoned executive team is bullish on creating value at the intersection of infrastructure and energy through bitcoin mining and hosting, groundbreaking managed services, energy arbitrage, operating traditional data centres, and capitalizing on emerging technologies like artificial intelligence and machine learning. Headquartered in Miami, Fla., Hut 8's infrastructure portfolio includes 11 sites: five high-performance computing data centres across British Columbia and Ontario that offer cloud, co-location, artificial intelligence, machine learning and visual effects rendering computing solutions, and six bitcoin mining, hosting and managed services sites located in Alberta, New York, Nebraska and Texas. Long distinguished for its unique treasury strategy, Hut 8 has one of the highest inventories of self-mined bitcoin of any publicly traded company globally.

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