TORONTO, Jan. 5, 2022 /CNW/ - 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, supporting open and decentralized
systems since 2018, is pleased to provide the following corporate
update.
Mining Production Highlights for December 2021:
- 276 Bitcoin were mined, resulting in an average production rate
of 8.9 Bitcoin per day;
- 100% of the self-mined Bitcoin for the month of December were
deposited into custody, consistent with Hut 8's Hodl strategy;
- Total Bitcoin balance held in reserve is 5,518 as of
December 31, 2021, a 97% increase
from the prior year-end; and
- Installed operating capacity currently sits at 2.0 EH/s, a 125%
increase in hashrate from December 31,
2020.
Operations Updates for December
2021:
- Purchased 2,505 MicroBT M30S machines from Foundry Digital that
were already installed at the Company's site in Medicine Hat, Alberta. This fleet of miners
added incremental hashrate of 228 PH/s during the month of
December;
- Installed 2,782 more efficient MicroBT M30S and M31S+ machines
at the Company's site in Drumheller,
Alberta;
- Electrical upgrades are ongoing at the Medicine Hat site, which are necessary to
allow for optimal hashrate efficiency from ongoing delivery of new
MicroBT miners. These upgrades are on track to contribute an
additional 450 PH/s in February
2022;
- Development and construction of the Company's third mining site
in North Bay, Ontario, is
well-advanced. To date, the design of the ventilation system and
the custom racking system have been completed, while construction
of the data center structure is underway. The Company expects to
have the North Bay site powered up
in mid-Q1 2022 and fully operational at 35 MW by the end of Q1
2022, contributing approximately 850 PH/s of additional hashrate to
our operations, which is expected to bring our total hashrate
across all three sites to 3.35 EH/s by the end of Q1 2022.
- Upgrade and development efforts in both Alberta and Ontario were delayed throughout December by
supply chain issues, including unprecedented flooding in
Western Canada, as well as ongoing
COVID-19 labour challenges.
"This has been a tremendous year for our industry and I
congratulate not only the Hut 8 team, but every single one of our
peers who have worked hard to build meaningful operations in
North America," said Jaime Leverton, CEO of Hut 8 Mining. "2021 has
been a year of transformation for Hut 8, with a focus on not only
rebuilding and upgrading, but future-proofing our operations. We
are business-building technologists, with a focus on
diversification, while keeping Bitcoin mining at our core. I
have been driving innovation and transformation in the technology
industry for over 20 years and have never been more excited or
energized when looking forward to the year ahead."
Equipment Financing with Trinity Capital:
On December 30, 2021, Hut 8
Holdings Inc., a wholly owned operating subsidiary of the
Company, entered into a US$30
million senior secured equipment financing term loan with
Trinity Capital Inc ("Trinity Capital"). The equipment financing
provides the Company with non-dilutive growth capital and was
structured such that collateral support is limited to certain new
MicroBT machines being installed at the Company's Medicine Hat, Alberta and North Bay, Ontario sites. The loan is
repayable over its 3-year term and carries a 9.5% interest
rate.
"We are pleased to achieve this financing milestone with Trinity
Capital," commented Shane Downey,
CFO of Hut 8. "This debt financing allows us to expand our capital
structure and overall liquidity, while achieving an attractive cost
of capital with limited security, in a traditional equipment
financing arrangement."
"We are excited to partner with Hut 8, one of the largest
digital asset miners on the continent," said Ryan Little, Managing Director of Equipment
Financing at Trinity Capital. "Their combination of experienced
leadership, vision and innovation makes Hut 8 unique, and we look
forward to partnering with them on this journey forward."
About Hut 8:
Hut 8 is one of North America's
largest innovation-focused digital asset miners, supporting open
and decentralized systems since 2018. Located in energy rich
Alberta and North Bay, Ontario, Canada, Hut 8 has one of
the highest installed capacity rates in the industry and holds more
self-mined Bitcoin than any crypto miner or publicly traded company
globally. Hut 8 is executing on its commitment to mining and
holding Bitcoin and has a diversified business and revenue strategy
to grow and protect shareholder value regardless of Bitcoin's
market direction. The Company's multi-pronged business strategy
includes profitable digital asset mining, white-label
high-performance compute hosting, as well as yield & income
programs leveraging its Bitcoin held in reserve. Having
demonstrated rapid growth and a stellar balance sheet, Hut 8 was
the first publicly traded miner on the TSX and the first Canadian
miner to be listed on The Nasdaq Global Select Market. Hut 8's team
of business building technologists are believers in decentralized
systems, stewards of powerful industry-leading solutions, and
drivers of innovation in digital asset mining and high-performance
computing, with a focus on ESG alignment. Through innovation,
imagination, and passion, Hut 8 is helping to define the digital
asset revolution to create value and positive impacts for its
shareholders and generations to come.
About Trinity Capital:
Trinity Capital (Nasdaq: TRIN), an internally managed specialty
lending company, is a leading provider of debt, including loans and
equipment financing, to growth-stage companies that are backed by
venture capital and institutional equity investors. Trinity's
investment objective is to generate current income and, to a lesser
extent, capital appreciation through investments, which consist
primarily of term loans and equipment financings, as well as
working capital loans, equity, and equity-related investments.
Trinity believes it is one of only a select group of specialty
lenders that has the depth of knowledge, experience, and track
record in lending to growth stage companies. For more information,
please visit https://trinitycap.com.
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 and includes, among others, statements regarding
Bitcoin network dynamics, the Company's trajectory to produce
additional Bitcoin, costs associated with mining digital assets,
global supply chain impacts, the expected timing of equipment
deliveries and upgrades, the Company's ability to maintain existing
rates of productivity and the expected timing of completing
construction and development activities at the Company's third
mining site in North Bay, Ontario,
including the anticipated power requirements to keep such site
running once fully operational and the expected hashrate
contributions from all of the Company's sites.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by Hut 8 as of the date of this press release, 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
that the anticipated timing for completion of the construction and
development activities at the Company's third mining site in
North Bay, Ontario will be further
delayed as a result of global supply chain impacts, the Company's
ability to make interest payments on any drawn portions of loan
with Trinity Capital, the impact of general economic conditions on
the Company, industry conditions, currency fluctuations, taxation,
regulation, changes in tax or other legislation, competition from
other industry participants, the lack of availability of qualified
personnel or management, stock market volatility, political and
geopolitical instability and the Company's ability to access
sufficient capital from internal and external sources. The
foregoing and other risks are described in greater detail in the
"Risk Factors" section of the Company's Annual Information Form
dated March 25, 2021, which is
available on www.sedar.com. 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, and you
should not place undue reliance on any forward-looking information.
There can be no assurance that such estimates and assumptions will
prove to be correct. The forward-looking information 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 circumstances, or otherwise, except
as required by law. New factors emerge from time to time, and
it is not possible for Hut 8 to predict all of these factors or to
assess in advance the impact of each such factor on Hut 8's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking information. The forward-looking
information contained in this press release is expressly qualified
by this cautionary statement.
Related Links: www.hut8mining.com
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