Greenfield site energized in 78 days, less than three months after breaking ground Cost to mine a Bitcoin at site expected to be 30% lower than cost at hosted facilities due to favorable energy profile MIAMI, April 16, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. ((Nasdaq, TSX:HUT) ("Hut 8" or the "Company"), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners, today announced the energization of one third of its 63 MW site in Culberson C ...

25.5 EH/s and 884 MW under management as Hut 8 executes closure of Drumheller site and prepares to energize Salt Creek site 9,102 Bitcoin on balance sheet positions Hut 8 to invest in growth as the halving approaches MIAMI, April 05, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT), ("Hut 8" or the "Company") a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners today released its operations update for March 2024. "March was ...

Financial Data and Key Metrics Changes - Revenue for the six-month period ending December 31, 2023, grew 32% year-over-year to $60.6 million, with Q4 2023 revenue increasing 212% year-over-year to $38.9 million [17][18][74] - Gross margin expanded to 47%, and net income for Q4 2023 was $10.6 million, compared to a net loss of $81.3 million in the prior period [18][49] - The market value of bitcoin holdings was approximately $557 million as of February 29, 2024, with 9,110 bitcoins held [19] Business Line Data and Key Metrics Changes - Digital assets mining revenue totaled $41.5 million for the six months ended December 31, 2023, compared to $25.7 million in the prior year [75] - Managed services revenue increased significantly to $12.6 million from $2.6 million in the prior period, reflecting a full six months of activity [42][43] - High-performance computing, colocation, and cloud revenue totaled $1.1 million for the six months ended December 31, 2023, representing one month of activity post-merger [44] Market Data and Key Metrics Changes - The average price of bitcoin mined increased from approximately $20,200 to $33,300 during the six months ended December 31, 2023 [75] - The company managed approximately 27 exahash under management across self-mining, hosting, and managed services business lines [31][132] Company Strategy and Development Direction - The company is focused on strengthening and growing its self-mining business while diversifying into managed services, high-performance computing, AI, and power generation [30][34][38] - A comprehensive restructuring program is underway to drive efficiencies and reduce costs, including the closure of the Drumheller site [20][21][26] - The company aims to maintain a strong balance sheet and explore strategic opportunities for growth without diluting shareholders [27][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage through volatility and capture upside while protecting downside risks [12][30] - The upcoming halving event is expected to impact bitcoin pricing, and the company is strategically waiting for the right time to invest in new generation mining equipment [110][111] - The company is committed to maximizing shareholder value and has implemented a new treasury strategy to utilize bitcoin holdings creatively [58][83] Other Important Information - The company reported a significant gain of $32.6 million due to the implementation of new fair value accounting rules for bitcoin holdings [48] - Total debt was reported at $187.4 million, with a balanced maturity profile and favorable repayment terms [50][51] Q&A Session Summary Question: What are the expectations for new generation mining rigs? - Management indicated that new generation rigs are expected to be commercially available towards the end of 2023 or early 2025, and they are closely monitoring the market for pricing and availability [110][111] Question: Can you provide an update on restructuring plans? - The restructuring program includes shutting down older facilities and retiring inefficient miners, with a focus on maximizing the value of each machine [112][113] Question: What strategic uses are there for the bitcoin holdings moving forward? - The company is exploring various uses for its bitcoin holdings, including project-level financing and potential sales to fund growth initiatives [117][118]

Financial Data and Key Metrics - Revenue for Q2 2023 was $19.2 million, a decrease of $24.6 million compared to $43.8 million in Q2 2022, driven by lower Bitcoin mined and a reduction in Bitcoin prices [8] - Digital asset mining revenue was $15 million in Q2 2023, down from $39.1 million in Q2 2022, with 399 Bitcoin mined compared to 946 Bitcoin in the prior year [8] - Net loss for Q2 2023 was $16.7 million, compared to a net loss of $88.1 million in Q2 2022, which included a non-cash loss on digital asset revaluation of $104.9 million [10] - Adjusted EBITDA for Q2 2023 was negative $2.7 million, an improvement from negative $98.1 million in Q2 2022 [20] - The company held 9,136 Bitcoin in reserve as of June 30, 2023, with a market value of $368.7 million, of which 8,289 Bitcoin ($334.5 million) remain unencumbered [36] Business Line Performance - High-performance computing (HPC) revenue was $4.2 million in Q2 2023, down from $4.7 million in Q2 2022, due to client churn and discontinued low-margin products [23] - The company signed a five-year agreement with Interior Health for co-location services, with revenue expected to start in Q4 2023 [4][28] - Digital asset mining profit decreased to $3.2 million in Q2 2023 from $14.9 million in Q2 2022, impacted by lower Bitcoin prices, increased network difficulty, and operational issues [34] Market and Operational Data - The average Bitcoin price in Q2 2023 was approximately $37,600, down from $41,400 in Q2 2022 [23] - Mining operations at Drumheller were operating at approximately 20% of installed hash rate due to electrical issues, with remediation efforts ongoing [21] - The company curtailed mining activities at North Bay, which also impacted Q2 results [19] Strategic Direction and Industry Competition - The company remains bullish on Bitcoin and its treasury strategy, which has been a key differentiator, including securing a $50 million credit facility with Coinbase Credit Inc [5] - The company is focused on diversifying its revenue streams, including HPC and hosting services, as part of its merger with USBTC, which is expected to close by the end of September 2023 [22][55] - The company is exploring opportunities in the high-performance computing market, particularly for AI, machine learning, and visual effects workloads, with 200 GPUs available for rental [26] Management Commentary on Operating Environment and Outlook - Management highlighted challenges in Q2, including electrical issues at Drumheller and the suspension of mining at North Bay, but remains optimistic about the long-term value of Bitcoin and the company’s diversified strategy [5][19] - The company expects to resolve the electrical issues at Drumheller within the calendar year but did not provide a specific timeline [47] - Management emphasized the importance of the merger with USBTC, which will increase self-mining capacity to 7.5 exahash and provide additional fiat-based revenue streams [22][56] Other Key Information - The company entered into a transaction support agreement with Macquarie Equipment Finance Limited to potentially acquire assets of Validus Power Corp, which could resolve ongoing litigation [6][17] - General and administrative costs for Q2 2023 were $12.5 million, including one-time transaction costs related to the USBTC merger [31] - The company has a cash balance of $26.7 million and $19.1 million in loans outstanding under the Coinbase credit facility as of June 30, 2023 [36] Q&A Session Summary Question: Timeline for resolving electrical issues at Drumheller - Management expects full resolution within the calendar year but did not provide a specific timeline [47] Question: Details on the transaction support agreement with Validus - The company did not disclose further details but will provide updates as information becomes available [48] Question: Outlook on the mining industry and diversification - Management believes the industry will see more diversification, with some miners remaining pure-play while others, like Hut 8, pursue diversified revenue streams [42] Question: Expected exahash output and capital for additional miners - The increase in exahash output to 7.5 exahash comes from USBTC’s existing self-mining facilities, with miners already ordered and coming online [56] Question: Progress on the USBTC merger - The company is confident in closing the merger by the end of September and has scheduled a shareholder vote for September 12 [55]

Financial Data and Key Metrics Changes - Revenue from digital asset mining activities was $133 million in 2022, down from $165.4 million in 2021, reflecting a decrease due to lower Bitcoin prices despite a 28% increase in mining production [14][26] - The company reported a net loss of $242.8 million for the year, compared to a net loss of $72.7 million in the prior year, largely driven by impairment charges and lower revenue [28][90] - Adjusted EBITDA was a loss of $3.9 million in Q4 2022, compared to a positive EBITDA of $35.3 million in the prior year’s quarter [31][90] Business Line Data and Key Metrics Changes - The high-performance computing (HPC) business contributed $16.9 million in revenue in 2022, with a significant portion being monthly recurring revenue [14][88] - The digital asset mining operation generated a profit of $60.4 million in 2022, down from $108.1 million in the prior year, due to lower Bitcoin prices and increased electricity costs [89] Market Data and Key Metrics Changes - The average Bitcoin price in Q4 2022 was approximately $24,600, down from approximately $70,400 in the same quarter a year prior [17] - The company’s Bitcoin holdings were valued at $203.6 million as of December 31, 2022, with 9,086 Bitcoin in custody [19][29] Company Strategy and Development Direction - The company is focused on expanding into high-performance computing and has renovated data centers in key regions, aiming for a diversified business model [8][11] - The merger with US Bitcoin Corp is expected to enhance operational capabilities and diversify the business, with a target completion in Q2 2023 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, anticipating extraordinary growth and emphasizing the importance of the merger for future operations [11][12] - The company noted challenges due to fluctuating Bitcoin prices and ongoing disputes affecting operations, particularly at the North Bay site [17][99] Other Important Information - The company recorded a non-cash impairment charge of $113.9 million in Q4 2022 due to the Ethereum merge, impacting GPU mining assets [16][28] - The balance sheet remains healthy with $30.5 million in cash and minimal debt as of year-end 2022 [19][29] Q&A Session Summary Question: What is the timeline for redeploying miners from North Bay to Medicine Hat? - The company is currently assessing options for redeploying miners and has moved them into temporary storage [20][32] Question: How does the drop in natural gas prices impact the outlook for 2023? - Management noted that while power rates have decreased, it is too early to provide specific guidance on the impact for 2023 [56][70] Question: What are the key use cases for the HPC segment? - The HPC segment serves a diverse range of industries, with increasing demand from artificial intelligence and gaming sectors [60][71] Question: What is the status of the merger with USBTC? - The company has received a no-action letter from the Competition Bureau of Canada, indicating no intention to challenge the merger, which is a positive development [43][99] Question: How is the company addressing electrical issues at the Drumheller site? - The company is investigating electrical issues that have reduced production and is exploring options to mitigate these challenges [82][90]

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $31.7 million, a decrease of $18.6 million compared to Q3 2021's $50.3 million, primarily due to lower Bitcoin prices [11][20] - Digital asset mining revenue was $27.3 million, down from $47.9 million in the same quarter of 2021, with 982 Bitcoin mined compared to 905 Bitcoin in Q3 2021 [12][20] - Adjusted EBITDA for Q3 2022 was $2.1 million, a significant drop from $30.7 million in the prior year [21] - The company recorded a net loss of $23.8 million for the quarter, compared to a net income of $23.4 million in the prior year [20] Business Line Data and Key Metrics Changes - The high-performance computing (HPC) business generated $4.4 million in revenue, primarily from monthly recurring revenue [6][13] - The cost of revenue increased to $45.6 million from $21.2 million in the prior year, with depreciation rising significantly due to more miners and infrastructure [14][20] - Mining profit for the digital asset mining operation was $9.3 million, down from $33.5 million in the prior year [17] Market Data and Key Metrics Changes - The company has the largest self-mined, unencumbered Bitcoin reserves among publicly listed companies, totaling $223.4 million as of September 30, 2022, based on 8,388 Bitcoin held [24] - The average cost of mining Bitcoin fell by 29% compared to Q2 2022, attributed to favorable power rates and a more efficient mining fleet [12][20] Company Strategy and Development Direction - The company maintains a three-pillar strategy focusing on Bitcoin mining, maximizing Bitcoin reserves, and growing the HPC data center business [9] - The company is committed to a conservative approach to balance sheet management, especially in light of market volatility [23] - The company plans to explore opportunities for organic and inorganic growth but remains cautious due to the current market environment [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including fluctuating energy prices and increased global hash rates [5] - The company intends to keep its Bitcoin holdings in cold storage until there is more clarity on market conditions and counterparty risks [46][87] - Management expects consolidation in the industry over the next six to twelve months due to distress among some players [32] Other Important Information - The company delivered a notice of events of default to Validus Power Corp. due to failure to meet operational milestones [16] - The company has raised approximately C$2.6 million under an equity distribution agreement with a maximum proceeds target of C$270 million [22] Q&A Session Summary Question: Insights on plans for next year regarding hash rate or business diversification - Management reiterated a focus on being opportunistic for both organic and inorganic growth but did not provide specific guidance [28] Question: Industry evolution and potential for consolidation - Management expects to see consolidation in the industry due to distress among some companies, but the future behavior of the hash rate remains uncertain [32] Question: Update on Validus and potential vertical integration - Management stated that negotiations with Validus are ongoing and that they are exploring various strategic opportunities [39] Question: Implications of recent events in the Bitcoin mining space - Management expressed concern about potential contagion effects from recent industry events and emphasized a conservative approach [46] Question: Guidance on hash rate capacity and North Bay situation - Management indicated that guidance remains fluid due to the situation at North Bay, which is currently operational [47] Question: Details on cost per coin reduction - Management attributed the 30% reduction in cost per coin to a combination of factors, including normalization of power costs [54] Question: Progress on Zenlayer partnership and HPC capacity - Management provided updates on the Zenlayer partnership and indicated that hardware delivery is ongoing, with environments expected to be operational by the end of the year [75]

Hut 8 Mining Corp. (NASDAQ:HUT) Q2 2022 Earnings Conference Call August 11, 2022 10:00 AM ET Company Participants Jaime Leverton - Chief Executive Officer Shane Downey - Chief Financial Officer Conference Call Participants Chris Brendler - D.A. Davidson Joseph Vafi - Canaccord George Sutton - Craig-Hallum Kevin Dede - HCW Bill Papanastasiou - Stifel Operator Welcome to Hut 8 Second Quarter Analyst and Investor Call. In addition to the press release issued earlier today, you can find Hut 8Â's financial state ...

HUT 8 Company Overview May 2022 Disclaimer This presentation is intended to provide an overview of the business of Hut 8 Mining Corp. ("Hut 8" or the "Company"). This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distrib ...

Hut 8 Mining Corp. (NASDAQ:HUT) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET Company Participants Jaime Leverton - Chief Executive Officer Shane Downey - Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Christopher Brendler - D.A. Davidson Kevin Dede - H.C. Wainwright Operator Welcome to the Hut 8 Q1 2022 Earnings Call. My name is James, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a ...

HUT 8 Company Overview March 2022 Disclaimer This presentation is intended to provide an overview of the business of Hut 8 Mining Corp. ("Hut 8" or the "Company"). This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distr ...