Hut 8 Commences Construction of New Digital Asset Mining Site in Culberson County, Announces New Treasury Strategy

63 MW site, planned to be energized in Q2, will be Hut 8’s newest North American mining operation

Site expected to have up to approximately 3.6 EH/s of self-mining capacity

Hut 8 to utilize its Bitcoin stack strategically to finance growth initiatives

MIAMI, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high-performance computing infrastructure provider, is pleased to announce that it has commenced construction of its newest digital asset mining site in Culberson County, Texas. With construction underway, the Company expects to bring miners online at the site in Q2 2024.

The Culberson County site creates the optionality for the Company to expand its self-mining fleet or to transition existing self-mining activity from Granbury, Texas and Kearney, Nebraska to the site. The site is expected to have up to approximately 3.6 EH/s of self-mining capacity if current generation miners are deployed. Based on current energy price forecasts, the Company expects that its cost to mine a Bitcoin at the Culberson County site will be approximately 30% lower than its cost to mine a Bitcoin through its hosted miners at Granbury, Texas and Kearney, Nebraska.

“The Culberson County project exemplifies Hut 8’s focus on operating excellence,” said Hut 8 CEO Asher Genoot. “Our in-house development team enables us to build quickly and cost-effectively. Compared to the benchmark of approximately $460,000 per MW set by recent acquisitions in the area, our all-in cost to design and build the Culberson County site is expected to be less than $275,000 per MW. This represents a savings of more than 40%, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion. For the Culberson County site specifically, this means that we expect to build the site for $17,300,000 or less, instead of approximately $29,000,000.”

The Company has also formally enacted a new treasury strategy that provides for the use of Bitcoin held in reserve to build balance sheet value and finance growth initiatives. Bitcoin held in reserve may be deployed through direct sales, option strategies, or other approaches. The strategy is designed to enhance the Company’s ability to execute strategic initiatives, increase its operating scale, and optimize metrics such as energy cost and cost to mine a Bitcoin. Decisions to utilize Bitcoin held in reserve will be made on a case-by-case basis. The Company will use this strategy to fund capital expenditures for the Culberson County site.