Mr. Asher Genoot reports

HUT 8 STREAMLINES OPERATIONS WITH CLOSURE OF DRUMHELLER SITE

Hut 8 Corp. has closed its Drumheller site in Alberta, Canada. In line with continuing restructuring and optimization initiatives designed to strengthen financial performance, the company is executing several strategic measures at the site.

Effectively immediately, Drumheller will cease to operate as a bitcoin mining site. Efficient miners will be relocated to the Medicine Hat site in Alberta, Canada, and old and inefficient miners will be retired from operations. Hut 8 will maintain its lease at the site and the option value of re-energizing the site if market conditions improve.

"Following a comprehensive analysis, we have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues," said Asher Genoot, chief executive officer of Hut 8. "Our restructuring plan aims to drive maximum value from our assets and position the company for profitable growth. With the nominal lease expense, we will also have a low-cost option to re-energize the site if energy rates in the AESO [Alberta Electric System Operator] grid decrease or hash price increases."

The site's most efficient miners, representing approximately 130 petahashes per second of hash rate, will be moved to Medicine Hat and energized in March to leverage the site's superior infrastructure and economics. Miners at Drumheller with efficiency worse than 38 joules per terahash will be retired from operations. The relocation of efficient miners and retirement of inefficient miners is expected to enhance Hut 8's cash flow, reduce its cost to mine a bitcoin and drive a pro forma increase in bitcoin mined per exahash of approximately 11 per cent.

As previously announced, the board of directors of Hut 8 determined, following the completion of the company's merger of equals, the time was right to set a new strategic direction for the company and that a transition of leadership was appropriate. Following the leadership transition, Hut 8 continues to restructure and optimize operations to drive profitable growth and create lasting shareholder value.

About Hut 8 Corp.

Hut 8 is a bitcoin miner and energy infrastructure operator with self-mining, hosting, managed services and traditional data centre operations spanning 11 sites across North America. Headquartered in Miami, Fla., Hut 8 manages 12 bitcoin mining, hosting and managed service sites in Alberta, New York, Nebraska and Texas and five high performance computing data centres in British Columbia and Ontario.

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