Ms. Jaime Leverton reports

HUT 8 OPERATIONS UPDATE FOR DECEMBER 2023

Hut 8 Corp. has released its operations report for December, 2023.

"Throughout December, our first full month operating as Hut 8 Corp., we saw unseasonably warm temperatures across many parts of the continent, which helped to stabilize energy costs at several of our sites; at the same time, we realized efficiency improvements at our Canadian sites after switching operations over to our purpose-built software," said Jaime Leverton, chief executive officer of Hut 8. "As we continued to focus on driving strong operating results, we also moved ahead with several strategic growth initiatives, including the purchase of a new substation in Texas, which we believe will give us the optionality to engage in demand response and a combination of self-mining and hosting once the site buildout is completed."

Highlights:

• On Dec. 31, Hut 8 signed a definitive agreement to purchase a 63 MW (megawatt) substation and 1.9 acres of land for approximately $7.1-million. The company also entered into a lease for 20 additional acres of land in Culberson county, Texas. This transaction gives the company the optionality to build out a front-of-the-metre site, engage in demand response programs and expand its self-mining capabilities or its hosting capacity in the near to medium term.
• On Dec. 28, the United States Bankruptcy Court for the Southern District of New York granted approval for Hut 8 to proceed with its full mining operations plan in connection with the Celsius Network LLC bankruptcy proceedings. The plan provides for the transfer of Celsius Network LLC's mining operations to a newly created MiningCo, and Hut 8 will provide end-to-end managed services for MiningCo's operations at five sites in Texas, including the design and development, engineering, financial modelling, budgeting, accounting, construction management, procurement, logistics, and RFP (request for proposals) co-ordination at the fifth and largest site in Cedarvale. It is expected that when construction is complete at Cedarvale, the company will oversee approximately 12 EH/s (exahashes per second) computing capacity (122,000 miners) and more than 300 MW of energy under the contract.
• In December, despite modest month-over-month changes in operational metrics as mainly self-mining machines were temporarily pulled offline for regular maintenance and repair, Hut 8 produced 63 more bitcoin than in November, which is attributable to an increase in transaction fees and improved efficiency gains realized at Hut 8's Foxtrot and Golf sites in Medicine Hat and Drumheller after completing the implementation of the company's purpose-built proprietary software at those sites.

Hut 8's expanded digital asset mining geographical footprint now includes the sites shown in the associated table.

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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