Mr. Asher Genoot reports

COURT GRANTS APPROVAL FOR HUT 8 TO PROCEED WITH FULL MINING OPERATIONS PLAN IN CONNECTION TO CELSIUS NETWORK LLC BANKRUPTCY PROCEEDINGS

The reorganization plan sponsored by Hut 8 Corp. filed in the Celsius Network LLC bankruptcy proceedings has been approved by the U.S. Bankruptcy Court for the Southern District of New York. The plan provides for the transfer of Celsius Network's mining operations to a newly created MiningCo, with Hut 8 managing MiningCo's mining operations under a four-year mining management agreement.

"The mining plan that was presented to the creditors and the courts is strong and sound, and we look forward to proceeding with construction imminently at the Cedarvale, Tex., site, and managing four additional sites once the process closes in the first quarter of 2024," said Asher Genoot, president of Hut 8. "We believe we have an excellent track record of expediently building and efficiently managing mining operations, and we look forward to growing our managed services business while also building equity for creditors of Celsius through their equity interests in MiningCo."

Under the managed services contract, Hut 8 will provide end-to-end managed services for MiningCo's operations at five sites in Texas, overseeing approximately 12 exahashes per second of computing capacity (122,000 miners) and more than 300 megawatts of energy. Hut 8 will provide managed services at four Texas locations totalling 87 megawatts:

• Rebel -- 25 megawatts;
• East Isle -- 30 megawatts;
• Style -- 20 megawatts;
• Garden City -- 12 megawatts.

In Cedarvale, Tex., Hut 8 will be responsible for the fifth MiningCo site's design and development, engineering, financial modelling, budgeting, accounting, construction management, procurement, logistics, RFP (request for proposal) co-ordination, and the management of approximately 66,000 miners and more than 215 megawatts of energy once construction is complete. The effectiveness of the plan remains subject to the satisfaction of certain conditions precedent.

As previously announced, Hut 8 combined businesses with U.S. Data Mining Group Inc. (doing business as U.S. Bitcoin Corp. (USBTC)) last month and was selected by Celsius to provide end-to-end development services for the Cedarvale site.

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 such as AI (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, AI, machine learning and VFX (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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