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]

Hut 8 Mining Corp. (NASDAQ:HUT) Q3 2022 Earnings Conference Call November 10, 2022 10:00 AM ET Company Participants Jaime Leverton – Chief Executive Officer Shane Downey – Chief Financial Officer Conference Call Participants Joseph Vafi – Canaccord Genuity Gus Gala – Truist Bill Papanastasiou – Stifel Chris Brendler – D.A. Davidson Kevin Dede – HCW Operator Welcome to the Hut 8Â's Third Quarter Analysts and Investor Call. In addition to the press release issued earlier today, you can find Hut 8Â's financial ...

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 ...

Financial Data and Key Metrics Changes - Hut 8 Mining Corp achieved record revenue of CAD173.8 million for 2021, more than tripling from CAD40.7 million in 2020, driven by strong mining activity and increased hash rate [8][9] - The company recorded a net loss of CAD72.7 million for 2021, compared to a net income of CAD19 million in 2020, primarily due to non-operational accounting treatments [16][27] - Adjusted EBITDA for 2021 was CAD96.6 million, a significant improvement from negative adjusted EBITDA of CAD0.2 million in 2020 [20] Business Line Data and Key Metrics Changes - Revenue from mining activities was CAD165.4 million, with 2,786 new Bitcoin mined at an average price of approximately CAD59,400 per Bitcoin [9] - The hosting business generated CAD8.4 million in revenue, up from CAD1.7 million in the prior year, benefiting from onboarding a second customer [10] Market Data and Key Metrics Changes - The cost of revenue for the year was CAD85 million, an increase from CAD59.2 million in the prior year, driven by higher site operating costs and increased depreciation expense [11] - General and administrative costs rose to CAD40.3 million from CAD5.1 million in the prior year, reflecting strategic investments in management and corporate practices [13] Company Strategy and Development Direction - The company is focused on diversifying its operations, including mining Ethereum and expanding its infrastructure through the acquisition of TeraGo's Data Center and Cloud Business [33][36] - Hut 8 aims to achieve a hash rate goal of 6 exahash over the balance of the year, with ongoing evaluations of supply chain opportunities for new mining equipment [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for continued growth, citing strong operating results and strategic capital investments [6] - The company is committed to leveraging its Bitcoin holdings and exploring non-dilutive measures to enhance liquidity [28][30] Other Important Information - As of December 31, 2021, Hut 8 held 3,518 Bitcoin in custody and 2,000 Bitcoin subject to lending arrangements, totaling CAD323.9 million in Bitcoin holdings [30] - The company recorded a CAD57.9 million unrealized gain on digital assets, contributing to an other comprehensive loss of CAD14.9 million for 2021 [20] Q&A Session Summary Question: What is your mining production plan for the rest of the year? - Management indicated that the third site in North Bay is nearing completion and expected to add over 1 exahash of incremental compute [44] Question: What is your vision for the TeraGo acquisition in the next one to two years? - Management stated that they will continue to drive growth through both organic and inorganic means, evaluating opportunities on a case-by-case basis [46] Question: How do you view capital allocation between mining, hosting, and the data center business? - Management noted that the capital requirements for mining and data centers are fundamentally different, and they will deploy capital based on market opportunities [54] Question: What is the expected impact of the North Bay facility on cost per coin? - Management acknowledged that while the North Bay facility could potentially lower costs, it is difficult to predict due to the variability in global network hashrate and difficulty [62] Question: How much did Ethereum mining contribute recently? - Management confirmed that Ethereum mining still contributes significantly, but they are prepared to shift to the next most profitable blockchain if necessary [67]

Call Start: 10:00 January 1, 0000 11:04 AM ET | --- | --- | |--------------------------------------------------------------------------------------------|-------| | | | | Hut 8 Mining Corp. (NASDAQ:HUT) Q3 Earnings Conference Call November 11, 2021, 10:00 AM ET | | | | | | Company Participants | | | Shane Downey – Chief Financial Officer Jaime Leverton – Chief Executive Officer | | | Conference Call Participants | | | Joseph Vafi – Analyst | | | Chris Brendler – Analyst George Clinton – Analyst | | | Kevin ...