Mr. Jaime Leverton reports

HUT 8 MINING HOLDS 5,518 SELF MINED BITCOIN IN RESERVE AS OF DECEMBER 31, 2021; PROVIDES MONTHLY PRODUCTION UPDATE FOR DECEMBER 2021; ANNOUNCES US$30 MILLION EQUIPMENT FINANCING WITH TRINITY CAPITAL

Hut 8 Mining Corp. has provided the following corporate update.

Mining production highlights for December, 2021:

• 276 bitcoin were mined, resulting in an average production rate of 8.9 bitcoin per day;
• 100 per cent of the self-mined bitcoin for the month of December were deposited into custody, consistent with Hut 8's hold strategy;
• Total bitcoin balance held in reserve is 5,518 as of Dec. 31, 2021, a 97-per-cent increase from the prior year-end;
• Installed operating capacity currently sits at two exahashes per second (EH/s), a 125-per-cent increase in hashrate from Dec. 31, 2020.

Operations updates for December, 2021:

• Purchased 2,505 MicroBT M30S machines from Foundry Digital that were already installed at the company's site in Medicine Hat, Alta. This fleet of miners added incremental hashrate of 228 petahashes per second (PH/s) during the month of December;
• Installed 2,782 more efficient MicroBT M30S and M31S+ machines at the company's site in Drumheller, Alta.;
• Electrical upgrades are continuing at the Medicine Hat site, which are necessary to allow for optimal hashrate efficiency from continuing delivery of new MicroBT miners. These upgrades are on track to contribute an additional 450 PH/s in February, 2022;
• Development and construction of the company's third mining site in North Bay, Ont., is well advanced. To date, the design of the ventilation system and the custom racking system have been completed, while construction of the data centre structure is under way. The company expects to have the North Bay site powered up in mid-Q1 2022 and fully operational at 35 megawatts (MW) by the end of Q1 2022, contributing approximately 850 PH/s of additional hashrate to the company's operations, which is expected to bring its total hashrate across all three sites to 3.35 EH/s by the end of Q1 2022;
• Upgrade and development efforts in both Alberta and Ontario were delayed throughout December by supply chain issues, including unprecedented flooding in Western Canada, as well as continuing COVID-19 labour challenges.

"This has been a tremendous year for our industry and I congratulate not only the Hut 8 team, but every single one of our peers who have worked hard to build meaningful operations in North America," said Jaime Leverton, chief executive officer of Hut 8 Mining. "Two thousand twenty-one has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future proofing our operations. We are business-building technologists, with a focus on diversification, while keeping bitcoin mining at our core. I have been driving innovation and transformation in the technology industry for over 20 years and have never been more excited or energized when looking forward to the year ahead."

Equipment financing with Trinity Capital Inc.

On Dec. 30, 2021, Hut 8 Holdings Inc., a wholly owned operating subsidiary of the company, entered into a $30-million (U.S.) senior secured equipment financing term loan with Trinity Capital. The equipment financing provides the company with non-dilutive growth capital and was structured such that collateral support is limited to certain new MicroBT machines being installed at the company's Medicine Hat, Alta., and North Bay, Ont., sites. The loan is repayable over its three-year term and carries a 9.5-per-cent interest rate.

"We are pleased to achieve this financing milestone with Trinity Capital," commented Shane Downey, chief financial officer of Hut 8. "This debt financing allows us to expand our capital structure and overall liquidity, while achieving an attractive cost of capital with limited security, in a traditional equipment financing arrangement."

"We are excited to partner with Hut 8, one of the largest digital asset miners on the continent," said Ryan Little, managing director of equipment financing at Trinity Capital. "Their combination of experienced leadership, vision and innovation makes Hut 8 unique and we look forward to partnering with them on this journey forward."

About Hut 8 Mining Corp.

Hut 8 is one of North America's largest innovation-focused digital asset miners, supporting open and decentralized systems since 2018. Located in energy-rich Alberta and North Bay, Ont., Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined bitcoin than any crypto miner or publicly traded company globally. Hut 8 is executing on its commitment to mining and holding bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of bitcoin's market direction. The company's multipronged business strategy includes profitable digital asset mining and white-label high-performance compute hosting, as well as yield and income programs leveraging its bitcoin held in reserve. Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the Toronto Stock Exchange and the first Canadian miner to be listed on the Nasdaq Global Select Market.

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