This news release constitutes a "designated
news release" for purposes of the
Company's prospectus supplement dated
August 17, 2022 to its short form base shelf prospectus dated
August 5, 2022.
TORONTO, Nov. 28,
2022 /PRNewswire/ - Hut 8 Mining Corp. (Nasdaq: HUT)
(TSX: HUT) ("Hut 8" or the "Company") announces that
it has requested mediation proceedings to be commended with Validus
Power Corp. ("Validus"), a third-party supplier of energy to
the Company's mining facility in North
Bay, Ontario.
On November 9, 2022, Hut 8
delivered a notice of event of default to Validus in respect of
Validus' breaches of certain obligations under the terms of the
power purchase agreement ("PPA") between Validus and the
Company. Validus has subsequently suspended delivery of energy to
the Company's mining operations in North
Bay and delivered a notice of event of default alleging that
Hut 8 failed to make certain payments related to the delivery of
energy to the North Bay site, an
allegation which the Company categorically denies. Hut 8 has
therefore notified Validus that it intends to proceed to mediation
pursuant to the terms of the PPA.
As previously announced, the Company is exploring alternatives
to mitigate the impact of this dispute, including through organic
and inorganic growth opportunities.
The Company will continue to monitor the situation and will
provide additional updates in respect of the suspension of mining
activities at North Bay, the
mediation process and any further proceedings, if and as
appropriate.
About Hut 8 Mining Corp.
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 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 Statement Regarding
Forward-Looking Statements
This press release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future.
Specifically, such forward-looking information included in
this press release include, but are not limited to, statements with
respect to the North Bay facility
and the expected outcome of any proceedings related to Validus.
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
those risks described in greater detail in the Company's annual
information form dated March 17, 2022
as well as its most recent Base Shelf Prospectus dated August 5, 2022 and Prospectus Supplement dated
August 17, 2022, all of which are
available at www.sedar.com, and should be considered
carefully.
If any of these risks or uncertainties materialize, or if the
opinions, estimates or assumptions underlying the forward-looking
information prove incorrect, actual results or future events might
vary materially from those anticipated in the forward-looking
information. Although we have attempted to identify important risk
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
risk factors not presently known to us or that we presently believe
are not material that could also cause actual results or future
events to differ materially from those expressed in such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. No forward-looking statement is a guarantee of future
results. Accordingly, you should not place undue reliance on
forward-looking information, which speaks only as of the date made.
The forward-looking information contained in this press release
represents our expectations as of the date specified herein and are
subject to change after such date. However, we disclaim any
intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required under applicable
securities laws.
All of the forward-looking information contained in this
press release is expressly qualified by the foregoing cautionary
statements.
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SOURCE Hut 8 Mining Corp