Remediation continuing in Drumheller, Alberta
At 9,152 BTC, Hut 8 continues to have one
of the largest self-mined Bitcoin reserves of any publicly traded
company
116 Bitcoin mined in July
TORONTO, Aug. 11, 2023 /PRNewswire/ -- Hut 8 Mining Corp.
(Nasdaq: HUT) (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, mined 116 Bitcoin in
July 2023.
Production highlights for July
2023:
- 116 Bitcoin were generated, resulting in an average production
rate of approximately 3.7 Bitcoin per day
- 100 Bitcoin – 50 Bitcoin produced in June and 50 Bitcoin
produced in July – were sold during the month for proceeds
totalling $3.9 million
- Total balance of Bitcoin in reserve was 9,152 on July 31 –
8,305 of which was unencumbered
- Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the
end of the month
- Hut 8 produced 44.6 BTC/EH in July
Operational highlights:
- Repair and restoration efforts at our Drumheller, Alberta site continued as the team
repaired more than 4,337 hashboards throughout the month, and the
site is currently operating at approximately 20% of the installed
hash rate.
- In late July, the team utilized mutually beneficial terms in
the Electric Service Agreement covering its Medicine Hat site, which provides the
opportunity for both parties to benefit from high prices in the
Alberta power market.
- Earlier today, Hut 8 announced that we have entered
into a transaction support agreement with Macquarie Equipment
Finance Ltd. ("Macquarie") in support of an opportunity to
potentially acquire certain assets of Validus Power Corp.
("Validus") and Validus' subsidiaries. While this process is
underway, the Company has paused plans to relocate approximately
6,400 miners originally operating in North Bay, Ontario to Texas.
"Our operational challenges at Drumheller have persisted, and despite
implementing custom firmware to manage the power supply output and
repairing more than 11,693 hashboards to date, we are seeing some
additional failures when reinstalling the miners, which is
adversely affecting our remediation timeline," said CEO
Jaime Leverton. "While we continue
to work to increase operations beyond 20 per cent at
Drumheller, we are pursuing growth
opportunities through the transaction with USBTC and our
transaction support agreement with Macquarie."
About Hut 8
Through innovation, imagination, and passion, Hut 8's seasoned
executive team is bullish on building and operating computing
infrastructure that powers Bitcoin mining, traditional data
centres, and emerging technologies like AI and machine learning.
Hut 8's infrastructure portfolio includes seven sites: five high
performance computing data centres across British Columbia and Ontario that offer cloud, co-location, managed
services, A.I., machine learning, and VFX rendering computing
solutions, and two Bitcoin mining sites located in Southern Alberta. Long-distinguished for its
unique treasury strategy, Hut 8 has one of the highest inventories
of self-mined Bitcoin of any publicly-traded company globally.
Follow us on X (formerly known as Twitter) at @Hut8Mining.
Cautionary Note Regarding Forward–Looking Information
This press release includes "forward-looking information" and
"forward-looking statements" within the meaning of Canadian
securities laws and United States
securities laws, respectively (collectively, "forward-looking
information"). All information, other than statements of historical
facts, included in this press release that address activities,
events or developments that the Company expects or anticipates will
or may occur in the future, including such things as future
business strategy, competitive strengths, goals, expansion and
growth of the Company's businesses, operations, plans and other
such matters is forward-looking information. Forward-looking
information is often identified by the words "may", "would",
"could", "should", "will", "intend", "plan", "anticipate", "allow",
"believe", "estimate", "expect", "predict", "can", "might",
"potential", "predict", "is designed to", "likely" 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 others, statements regarding: Bitcoin network
dynamics; the Company's ability to advance its
longstanding HODL strategy; the Company's ability to
produce additional Bitcoin and maintain existing rates of
productivity at all sites; the Company's ability to continue mining
digital assets efficiently; the sale of the Company's Bitcoin
production and the proposed use of proceeds from such sale; the
Company's plans with respect to the energization of the miners that
were removed from the North Bay
facility; the Company's expected recurring revenue and growth rate
from its high performance computing business; the remediation of
the operational issues at the Company's Drumheller facility, and the timing thereof;
expectations related to Hut 8 Corp.'s hashrate and self-mining
capacity; the ability of Hut 8 and US Bitcoin Corp to complete the
proposed business combination transaction, including, receipt of
required regulatory approvals, shareholder approvals, court
approvals, stock exchange approvals and satisfaction of other
closing customary conditions; and the Company's ability to
successfully navigate the current market.
Statements containing forward-looking information are not
historical facts, but instead represent management's expectations,
estimates and projections regarding future events based on certain
material factors and assumptions at the time the statement was
made. While considered reasonable by Hut 8 as of the date of this
press release, such statements are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
to be 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 botnet
obtaining control of processing power on the Bitcoin network,
further development and acceptance of the Bitcoin network, changes
to Bitcoin mining difficulty, loss or destruction of private keys,
increases in fees for recording transactions in the Blockchain,
erroneous transactions, reliance on a limited number of key
employees, reliance on third party mining pool service providers,
regulatory changes, classification and tax changes, momentum
pricing risk, fraud and failure related to digital asset exchanges,
difficulty in obtaining banking services and financing, difficulty
in obtaining insurance, permits and licenses, internet and power
disruptions, geopolitical events, uncertainty in the development of
cryptographic and algorithmic protocols, uncertainty about the
acceptance or widespread use of digital assets, failure to
anticipate technology innovations, climate change, currency risk,
lending risk and recovery of potential losses, litigation risk,
business integration risk, changes in market demand, changes in
network and infrastructure, system interruption, changes in leasing
arrangements, failure to achieve intended benefits of power
purchase agreements, potential for interrupted delivery, or
suspension of the delivery, of energy to the Company's mining
sites, and other risks related to the digital asset and data centre
business. For a complete list of the factors that could affect the
Company, please see the "Risk Factors" section of the Company's
Annual Information Form dated March 9, 2023, and Hut 8's other
continuous disclosure documents which are available on the
Company's profile on the System for Electronic Document Analysis
and Retrieval at www.sedar.com and on the EDGAR section of the U.S.
Securities and Exchange Commission's website at www.sec.gov.
These factors are not intended to represent a complete list of
the factors that could affect Hut 8; however, these factors should
be considered carefully. 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 vary materially from those described
in this press release as intended, planned, anticipated, believed,
sought, proposed, estimated, forecasted, expected, projected or
targeted and such forward-looking statements included in this press
release should not be unduly relied upon. The impact of any one
assumption, risk, uncertainty, or other factor on a particular
forward-looking statement cannot be determined with certainty
because they are interdependent and Hut 8's future decisions and
actions will depend on 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 alter
statements containing any forward-looking information, or the
factors or assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
Additional Information about the Transaction and Where to
Find It
In connection with the proposed business combination (the
"Transaction") of Hut 8 and U.S. Data Mining Group, Inc. (dba US
Bitcoin Corp.) ("USBTC"), that, if completed, would result in Hut 8
Corp. ("New Hut") becoming a new public company, New Hut has filed
a registration statement on Form S-4 (the "Form S-4") with the U.S.
Securities and Exchange Commission (the "SEC"). USBTC and Hut 8
urge investors, shareholders, and other interested persons to read
the Form S-4, including any amendments thereto, the Hut meeting
circular, as well as other documents to be filed with the SEC and
documents to be filed with Canadian securities regulatory
authorities in connection with the Transaction, as these materials
will contain important information about USBTC, Hut 8, New Hut and
the Transaction. New Hut also has, and will, file other documents
regarding the Transaction with the SEC. This press release is not a
substitute for the Form S-4 or any other documents that may be sent
to Hut's shareholders or USBTC's stockholders in connection with
the Transaction. Investors and security holders will be able to
obtain free copies of the Form S-4 and all other relevant documents
filed or that will be filed with the SEC by New Hut through the
website maintained by the SEC at www.sec.gov or by contacting
the investor relations department of Hut 8 at info@hut8.io and
of USBTC at info@usbitcoin.com.
No Offer or Solicitation
This press release is not intended to and shall not constitute
an offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended (the "Securities Act") or in a transaction
exempt from the registration requirements of the Securities
Act.
Hut 8 Investor Relations, Sue Ennis, sue@hut8.io; Hut 8
Media Relations, Erin Dermer, erin.dermer@hut8.io
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