Mr. Jimmy Vaiopoulos reports
HUT 8 MINING: OFFICIALLY REPAYS LOAN IN FULL, SAVES COMPANY US$1.6M
Hut 8 Mining Corp. has paid back its $20-million (U.S.) loan with Genesis Global Capital LLC as planned, in full. The repayment of this loan means an extra $2.4-million (U.S.) for Hut 8, driven by the savings from interest expenses of $1.6-million (U.S.).
"Hut 8 initially took out this loan with Genesis in November, 2019, when bitcoin was close to $7,000 (U.S.). This loan provided Hut 8 additional leverage to significantly benefit our balance sheet, as our bitcoin (which now sits at 3,012 bitcoin on balance) has more than doubled its previous all time highs in 2017," said Jimmy Vaiopoulos, chief financial officer of Hut 8. "Hut 8 is now well capitalized. This full repayment of debt shows our position of strength in this fast-growing industry."
"The benefits of this loan and it's repayment for Hut 8 signal the execution of our multipronged strategy to grow shareholder value," said Jaime Leverton, chief executive officer of Hut 8. "We look to reduce expenses without reducing the bitcoin on our balance sheet. We look for revenue diversification strategies to provide increased downside risk protection. This is what Hut 8 is about and what we intend to keep doing as we grow."
As one of North America's most innovative, oldest and highest-installed-capacity Canada-based bitcoin miners, a summary of recent announcements are:
- As of Feb. 17, 2021, Hut 8 has 3,012 bitcoin on its current balance sheet, 1,000 of these bitcoin are in a Genesis yield account generating a 4-per-cent yield paid out in United States dollars.
- Hut 8 holds more self-mined bitcoin than any other publicly traded bitcoin miner in the world. This is a tremendous benefit, as investors seek assets such as bitcoin as an inflationary hedge.
- Hut 8 attained its goal of one E/H earlier last year and is on track for an over-30-per-cent increase in energy capacity -- maintains its position as leader in installed mining equipment and capacity.
- Hut 8 currently has 1,073 petahash per second (PH/s) installed with an anticipated increase to over 1,300 PH/s as new equipment comes on-line.
- Hut 8 ranked 11th out of 10,000 in the 2021 OTCQX Best 50, a ranking of top-performing companies traded on the OTCQX Best Market last year.
- Hut 8 recently achieved its goal of investment banking research and earned a buy rating from HC Wainwright investment bank. This is paramount in achieving its objectives of greater institutional investment and capital inflows.
- Hut 8 signed a global and Canadian first: bold energy and blockchain innovation play through an exclusive memorandum of understanding with global energy partner Validus Power Corp. with the intention to secure further capacity expansion and greater energy flexibility.
About Hut 8 Mining Corp.
Hut 8 is one of North America's oldest and largest bitcoin miners. Hut has one of the highest installed capacity rates in the industry and is top-5-largest holders of self-mined bitcoin of publicly traded companies in the world. Recently ranked 11th (of 10,000) on the 2021 OTCQX Best 50, the Hut 8 leadership team is continually looking for ways to challenge traditional approaches in order to find innovative, powerful, industry-leading solutions -- a mindset now being applied to its revenue diversification, environmental, social and governance, and carbon-footprint-reduction strategy. Stick with the company that has a plan for how to grow shareholder value regardless of bitcoin market direction.
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