Mr. Asher Genoot reports

HUT 8'S STRATEGIC BITCOIN RESERVE SURPASSES $1 BILLION IN MARKET VALUE WITH PURCHASE OF $100 MILLION OF BITCOIN

Hut 8 Corp. has purchased approximately 990 bitcoin. The aggregate purchase price of the acquired bitcoin was approximately $100-million, or an average of approximately $101,710 per bitcoin.

Combined with the bitcoin held prior to this purchase, Hut 8's strategic bitcoin reserve now totals 10,096 bitcoin with a market value of more than $1-billion as of Dec. 18, 2024. Based on publicly available information, the company believes this positions it as one of the 10 largest corporate owners of bitcoin in the world. The 10,096 bitcoin held in reserve were acquired through low-cost production and the strategic at-market purchase announced today for a realized average cost of $24,484 per bitcoin. The purchased bitcoin will play a central role in an innovative financing model for the company's previously announced fleet upgrade.

Hut 8's strategic bitcoin reserve bolsters the company's capital strategy by serving as a flexible asset that can optimize balance sheet performance and finance capital-intensive growth initiatives, including power and digital infrastructure development. Bitcoin held in reserve may be leveraged through option strategies, pledges, sales or other strategies, as appropriate. Decisions to utilize bitcoin held in reserve will be made on a case-by-case basis, optimizing for return on invested capital and guided by rigorous cost-benefit analysis.

"A key component of our treasury strategy, the strategic bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business," said Asher Genoot, chief executive officer of Hut 8. "We believe deeply in our operating business and that building a strategic bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, as we scale operations and extend our cost advantage in bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices, strengthening the yield of our reserve strategy."

"Our decision to establish a strategic bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders," said Sean Glennan, chief financial officer of Hut 8. "With a significant war chest for growth, we are leveraging bitcoin as part of a treasury management strategy designed to generate risk-adjusted returns that outperform idle cash. Beyond building our reserve with a focus on low-cost production and strategic at-market purchases, we will continue to actively manage and trade around our holdings with the goal of unlocking additional value. Our flexible approach is designed to ensure that, if compelling opportunities arise within our operating business, we are prepared to strategically deploy our reserve to drive platform expansion and create long-term value."

About Hut 8 Corp.

Hut 8 is an energy infrastructure operator and bitcoin miner with self-mining, hosting, managed services and traditional data centre operations across North America. Headquartered in Miami, Fla., Hut 8's portfolio comprises 15 sites: five bitcoin mining, hosting and managed services sites in Alberta, New York and Texas; five cloud and colocation data centres in British Columbia and Ontario; four power generation assets in Ontario; and one non-operational site in Alberta.

We seek Safe Harbor.