188 Bitcoin mined in January
Held the largest amount of self-mined
Bitcoin in reserve on January 31 of
any publicly-traded company
TORONTO, Feb. 13, 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 188 Bitcoin in the period ending January 31, 2023.
Production highlights for January
2023:
- 188 Bitcoin were generated, resulting in an average production
rate of approximately 6.1 Bitcoin per day.
- Total Bitcoin balance held in reserve as of January 31 is 9,274, and further to our
announcement on February 7, 2023, we
expect to sell our January Bitcoin production to fund operating
costs.
- Installed ASIC hashrate capacity at our Alberta facilities was 2.5 EH/s at the end of
the month.
- Hut 8 produced 75.2 BTC/EH in January.
Operational highlights:
- On February 7, 2023, Hut 8
announced a merger of equals with U.S. Data Mining Group, Inc. dba
US Bitcoin Corp ("USBTC") which is expected to establish the
combined company as a large scale, publicly traded Bitcoin miner
focused on economical mining, highly diversified revenue streams,
and industry-leading best practices in ESG.
"We have been intentional and strategic in pursuing our HODL
strategy: by building a large, unencumbered stack, we have afforded
ourselves the optionality to strategically use a portion of it to
cover operating expenses rather than having to seek other financing
options with less attractive terms," said Jaime Leverton, CEO. "I am confident that
selling production while we focus on closing the merger with USBTC
is the right approach, as we expect to create a strong self-mining,
hosting, managed infrastructure operations, and HPC organization in
the long term."
Other Company updates:
- On January 26, 2023, Hut 8 filed
a Statement of Claim in the Superior Court of Justice of
Ontario (the "Court") against
Validus Power Corp. and its subsidiary, Bay Power Corp.
(collectively, "Validus"), in respect of Validus' failure to meet
its contractual obligations under the power purchase agreement it
entered into with Hut 8 at the Company's mining facility in
North Bay, Ontario.
- On February 9, 2023, Hut 8
received a notice of termination from Validus of the Company's
lease at the North Bay facility.
The notice of termination is without merit and Hut 8 reserves all
rights in respect thereof, which it expects to address as part of
the proceedings before the Court. Hut 8 does not intend to make
additional comments on this subject unless otherwise determined to
be appropriate.
About Hut 8
Hut 8 is one of North America's largest
innovation-focused digital asset miners, led by a team of
business-building technologists, bullish on bitcoin, blockchain,
Web 3.0, and bridging the nascent and traditional high performance
computing worlds. With two digital asset mining sites located
in Southern Alberta and a third site in North Bay,
Ontario, all located
in Canada, Hut 8 has one of the highest capacity rates in the
industry and one of the highest inventories of unencumbered,
self-mined Bitcoin of any digital asset miner or publicly-traded
company globally. With 36,000 square feet of geo-diverse data
centre space and cloud capacity connected to electrical grids
powered by significant renewables and emission-free resources, Hut
8 is revolutionizing conventional assets to create the first hybrid
data centre model that serves both the traditional high performance
compute (Web 2.0) and nascent digital asset computing sectors,
blockchain gaming, and Web 3.0. Hut 8 was the first Canadian
digital asset miner to list on the Nasdaq Global Select Market.
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. 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 deploy additional miners; the Company's
ability to continue mining digital assets efficiently; the
Company's expected recurring revenue and growth rate from its high
performance computing business; the expected outcomes of the merger
of equals transaction with USBTC; and the Company's ability to
successfully navigate the current market; and statements with
respect to the North Bay facility
and the expected outcome of any proceedings related to Validus.
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, the COVID19 pandemic, 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 17, 2022, 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.
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Hut 8 Investor Relations, Sue Ennis, sue@hut8.io; Hut
8 Media Relations, Yamini Coen, yamini.coen@hut8.io
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