Mr. Asher Genoot reports

HUT 8 ADVANCES CAPITAL STRATEGY WITH REFINANCING OF BITCOIN-BACKED CREDIT FACILITY

Hut 8 Corp.'s subsidiary has entered into a $200-million, 364-day bitcoin-backed credit facility with FalconX, replacing its prior credit facility with Coinbase Credit Inc. The facility bears a fixed interest rate of 7.0 per cent, a 200-basis-point improvement over the 9.0-per-cent rate under the prior Coinbase facility.

The facility reflects significant improvements in economic and structural terms while preserving key collateral protections, including:

• A reduction in fixed interest rate to 7.0 per cent from 9.0 per cent under the prior Coinbase facility: The Coinbase facility previously bore a stated interest rate ranging from 10.5 per cent to 11.5 per cent between the quarter ended Dec. 31, 2023, and the quarter ended March 31, 2025. The cumulative reduction of up to 450 basis points evidences Hut 8's sustained focus on lowering its cost of debt on bitcoin-backed credit and broader cost of capital.
• Approximately 3,300 bitcoin unencumbered, with a market value of approximately $260-million as of May 1, 2026, representing bitcoin released from the prior Coinbase facility net of bitcoin pledged as collateral under the new facility: This helps advance the company's objective of optimizing the role of bitcoin on its balance sheet and increasing liquidity not subject to collateral covenants.
• Continued collateral and borrower protections, including a limited-recourse structure under which recourse is limited to pledged bitcoin collateral, a no-rehypothecation covenant on pledged bitcoin and fixed loan-to-value thresholds with no loan-to-value ratchet mechanism triggered by declines in the price of bitcoin.

Asher Genoot, chief executive officer of Hut 8, said: "Our capital strategy is designed to lower our cost of capital, reduce risk and expand strategic flexibility. This facility advances these objectives: It continues the progression of improvement in our cost of debt on bitcoin-backed credit and it expands our position of unencumbered bitcoin, a strategic asset that enhances our financial flexibility across market cycles."

Sean Glennan, chief financial officer of Hut 8, said: "This refinancing strengthens our balance sheet by decreasing our cost of debt while simultaneously increasing bitcoin held outside collateral covenants, resulting in additional liquidity to deploy into the growth of our business. It advances our broader objective of optimizing the role of bitcoin on our balance sheet and lowering our cost of capital."

Craig Birchall, head of credit at FalconX, said: "We're excited to partner with Hut 8 on this financing opportunity. Hut 8's diversified revenue streams, operating history across multiple cycles and credit profile that has improved transaction over transaction underscore the strength and resilience of its business -- a combination uncommon among institutional borrowers in this market. This transaction highlights FalconX's role as a leading financing partner, delivering tailored bitcoin-backed lending solutions to counterparties of this calibre."

About Hut 8 Corp.

Hut 8 is an energy infrastructure platform integrating power, digital infrastructure and compute at scale to fuel next-generation, energy-intensive technologies such as AI (artificial intelligence), high-performance computing and ASIC (application-specific integrated circuit) compute. The company develops, commercializes and operates industrial-scale energy and data centre infrastructure through a power-first, innovation-driven approach.

We seek Safe Harbor.