Hut 8 Production and Mining Operations Update

7,078 self-mined bitcoins in reserve after 309 generated in May

Test completed at North Bay, Ontario to place; mining started on June 2

TORONTO, June 6, 2022 /PRNewswire/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or the “Company”), one of the largest innovation-driven digital asset mining pioneers in North America, supporting systems open and decentralized since 2018, grew its Bitcoin holdings in the period ending May 31st and began operations at its North Bay website on June 2.

Production Highlights for May 2022:

• 309 Bitcoin were mined, giving an average production rate of 10 Bitcoin per day
• Our Ethereum mining operation – for which we receive payment in Bitcoin – generated around 14% of our total production at a cost of around $3654 by BTC
• 100% of self-mined Bitcoins in May were taken into custody, in line with Hut 8’s longstanding HODL strategy
• We concluded our Bitcoin yield programs during the month, putting 100% of our reserves on hold
• The total balance of Bitcoin held in reserve is 7,078 at May 31, 2022
• Installed operating capacity was 2.64 PE/s

Additional Updates:

• Electricity costs continued to fluctuate throughout the month and we limited our consumption to Drumheller when the spot price of electricity rose
• Testing began at Hut 8’s third mine in North Bay, Ontario end of May and started operating with 15 MW of power on June 2adding approximately 400 PH/s to Hut 8’s operating capacity
• We continue to add miners and increase our power supply throughout June, and we expect the North Bay mine will have a measurable impact on our production results in the future

“We are thrilled that our most powerful and efficient machines are now mining Bitcoin at our North Bay website,” said Jaime LevertonHut 8 CEO. “Over the next few weeks, our team will continue to install and bring miners online in real time, completing production at our facilities at medicine hat and Drumheller.”

About Hut 8

Hut 8 is one of North America leading innovation-driven digital asset miners, led by a team of start-up technologists, bullish on bitcoin, blockchain, web 3.0 and bridging nascent and traditional high-performance computing worlds . With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontarioall located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest self-mined Bitcoin inventories of any crypto miner or listed company in the world. With 36,000 square feet of geo-diverse data center space and cloud capacity connected to power grids powered by significant renewable and emission-free resources, Hut 8 is revolutionizing conventional assets to create the world’s first data center model. data hybrid that serves both traditional high-performance computing (Web 2.0) and the emerging sectors of digital asset computing, blockchain gaming and Web 3.0. Hut 8 was the first Canadian digital asset miner to feature on the Nasdaq Global Select Composite Index and the first blockchain company to be added to the S&P/TSX Composite Index in 2021. Through innovation, the imagination and passion, Hut 8 helps define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Caution Regarding Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States respectively securities laws (collectively, “Forward-Looking Information”). All information, other than statements of historical fact, included in this press release that addresses activities, events or developments that the Company expects or anticipates will or may occur in the future, including such matters as future business strategy, competitive forces, objectives, business expansion and growth, operations, plans of the Company and other similar matters constitute forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “enable”, ” believes”, “estimates”, “expects”, “predicts”, “may”, “could”, “potential”, “predicts”, “is designed to”, “probable” or similar expressions. In addition, any statements in this press release that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information and include, among other things, statements regarding: Bitcoin network dynamics and Ethereum; the Company’s ability to advance its HODL and growth strategies; the Company’s ability to produce additional bitcoins and maintain existing productivity rates; the company’s ability to install and bring additional miners online as well as increase the power supply to its North Bay to place; the anticipated measurable impact on North Bay site will have on its production results; the Company’s ability to limit the costs associated with mining digital assets; and the Company’s ability to increase its overall efficiency and hash rate through expected production contributions from all online miners at each of the Company’s three locations.

Statements containing forward-looking information are not historical facts, but rather represent management’s expectations, estimates and projections regarding future events based on certain significant factors and assumptions at the time the statement was made. Although believed to be reasonable by Hut 8 as of the date of this press release, these statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, the level of business, performance or achievements are materially different from those expressed or implied by such forward-looking information, including, but not limited to, security and cybersecurity threats and hacks, malicious actors or the botnet gaining control of processing power over Bitcoin or Ethereum network, development and acceptance of Bitcoin and Ethereum networks, modification of Bitcoin or Ethereum mining difficulty, loss or destruction of private keys, increase in Blockchain transaction registration fees, erroneous transactions, use of a limited number of key employees, use of p third party mining ool, regulatory changes, tax classification and changes, dynamic pricing risk, angel cryptocurrency exchange fraud and failure, difficulty obtaining banking and funding, difficulty obtaining insurance, permits and licenses, internet and power outages, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty in the acceptance or widespread use of cryptocurrency, failure to anticipate technological innovations, the pandemic COVID19, climate change, currency risk, lending risk and potential loss recovery, litigation risk, trade integration risk, market demand changes, network and infrastructure changes , system disruption, changes in rental agreements and other risks associated with cryptocurrency and center business of data. For a complete list of factors that could affect the Company, please see the “Risk Factors” section of the Company’s Annual Information Form dated March 17, 2022and Hut 8’s other continuous disclosure documents which are available at www.sedar.com.

These factors are not intended to represent a complete list of factors that could affect Hut 8; however, these factors should be carefully considered. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from those described in this press release as anticipated, planned, anticipated, believed, sought, proposed, estimated, planned, expected, projected or targeted and the forward-looking statements included in this press release should not be relied upon unduly. The impact of any assumption, risk, uncertainty or other factor on any particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8’s future decisions and actions will depend on the management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or change any statements containing forward-looking information, or the underlying factors or assumptions, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Hut 8 Mining Corp