TORONTO, Jan. 20, 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 announce that
it has entered into a definitive agreement to purchase the cloud
and colocation data center business from TeraGo Inc. (the "Data
Center Business"). Once complete, the acquisition will establish
Hut 8 as a leading high-performance computing platform, providing
unique positioning for the Company within the digital asset
ecosystem.
About the Data Center Business
The acquisition consists of five data centers across
Canada with a comprehensive
information technology offering that includes a complete selection
of scalable cloud services. The Data Center Business spans from
Toronto to Vancouver with over 36,000 square feet of
geo-diverse data center space. Existing saleable power capacity
totals 4.1 MW, with a further 1.5 MW of expansion capacity
available within existing shelf space in the Kelowna location. Hut 8 is acquiring
customers, employees and a diverse product offering as part of the
acquisition.
Transaction Rationale
This acquisition constitutes a pivotal moment in Hut 8's
positioning as an innovative and diversified player in the digital
asset and high-performance computing sectors, serving to set Hut 8
apart from its peers. The transaction provides the following
benefits to Hut 8:
- Enhances diversification profile by establishing a broad high
performance computing platform with recurring revenues and a stable
cash flow profile;
- Establishes a platform with approximately 400 commercial
customers, across a variety of industry verticals including gaming,
visual effects and government agencies, enabling Hut 8 to become
the only digital asset miner with enterprise grade data center
capabilities;
- Provides exposure to secular tailwinds supporting the growth of
the resilient data center sector and capitalizes on the
acceleration of existing digitalization trends;
- Creates a platform for the development of applications and
services to underserved markets and customers in the growing
digital asset, blockchain, gaming and web 3.0 industries;
- Accelerates Hut 8's ability to address the need for HPC (High
Performance Computing) and GPU (Graphics Processing Units)
compute;
- Addition of more than 30 experienced data center professionals
with enterprise grade data center expertise, to enhance our
existing core mining operations and team;
- Provides access to operating sites which are connected to
electrical grids powered by significant renewables and
emissions-free resources.
"As a team of Bitcoin and blockchain bulls, we are thrilled with
the transformative growth opportunity this investment provides Hut
8," said Jaime Leverton, Chief
Executive Officer of the Company. "The acquisition of this
complementary business diversifies Hut 8's operations with a
discrete, steady cash flow, that is uncorrelated to digital asset
mining. This acquisition also puts us at the forefront of the
accelerated digitization of industry, establishing us as the bridge
between traditional and nascent iterations of high-performance
computing. Our unconventional approach to revolutionizing
conventional assets serves to drive Hut 8's growth, innovation and
market share in the high-performance computing, blockchain, and Web
3.0 industries."
Transaction Details
Under the terms of the agreement, consideration payable to
TeraGo Inc. will consist of C$30
million, to be funded from existing cash on the Company's
balance sheet. Hut 8 will retain substantially all current
Data Center Business employees. The transaction has been approved
by the board of directors of Hut 8 and TeraGo and is expected to
close in the first quarter of 2022.
Advisors and Counsel
Stifel GMP acted as financial advisor to Hut 8 and Fasken
Martineau DuMoulin LLP acted as its legal advisors.
About Hut 8
Hut 8 is one of North America's
largest innovation-focused digital asset miners, supporting open
and decentralized systems since 2018. With two sites located in
energy rich Alberta and a third
site in 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.
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
high-performance computing, a new line of business, transformative
growth opportunities and diversification, the Company's ability to
expand on existing saleable power, the Company's ability to attract
new customers and retain existing customers, the Company's ability
to provide strong recurring revenues and stable cash flows, the
Company's ability to capture growth and market share, the Company's
ability to innovate and capture customers in the underserved high
performance compute, blockchain, and web 3.0 industries,
acceleration of the Company's ability to address the need for HPC
(High Performance Computing) and GPU (Graphics Processing Units)
compute, the Company's exposure to secular tailwinds supporting the
growth of the resilient data center sector, the Company's ability
to capitalize on the acceleration of existing digitalization
trends, the Company's ability to retain substantially all key
employees, and the Company's ability to access operating sites
which are connected to grids powered by significant renewables and
emissions-free resources .
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 the completion of the acquisition
of the Data Centre Business, the successful integration of the Data
Centre Business, the future performance development and expansion
of the Data Centre Business, the ability to retain and grow the
customers of the Data Centre Business, expected synergies of the
Data Centre Business, availability of power on acceptable terms,
the impact of general economic conditions on the Company and the
Data Centre Business, 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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SOURCE Hut 8 Mining Corp