Hut 8 Secures Five-Year Capacity Contracts with IESO for 310 MW of Power Generation Assets

Core Insights - Hut 8 Corp. has secured five-year capacity contracts for its four natural gas-fired power plants in Ontario, enhancing revenue stability and reducing earnings volatility [1][2][7] - The contracts were awarded following successful bids in the IESO Medium-Term 2 capacity auction, with a total capacity of 310 MW across four sites [2][7] - The average capacity payment is approximately CAD $530 per MW-business day in Year 1, with potential for inflation adjustments over time [2][7] Company Overview - Hut 8 Corp. operates as an energy infrastructure platform, focusing on power, digital infrastructure, and compute for energy-intensive applications like Bitcoin mining and high-performance computing [1][5] - The company manages 1,020 megawatts of energy capacity across 15 sites in the U.S. and Canada, including Bitcoin mining and high-performance computing data centers [5] Market Context - The contracts position Hut 8's power plants for long-term relevance in a capacity-constrained power market, with IESO projecting a 75% increase in electricity demand by 2050 and a potential capacity shortfall of up to 5.8 GW by 2030 [7]