Hut 8 Ramps Up for Growth with Strategic Site Closures and New Salt Creek Energization, Bitcoin Reserves Position It for Expansion Ahead of Cryptocurrency Halving

Author: Benzinga Newsdesk | April 05, 2024 06:32am

25.5 EH/s and 884 MW under management as Hut 8 executes closure of Drumheller site and prepares to energize Salt Creek site
 

9,102 Bitcoin on balance sheet positions Hut 8 to invest in growth as the halving approaches

MIAMI, April 05, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT), ("Hut 8" or the "Company") a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners today released its operations update for March 2024.

"March was another productive month in our post-merger restructuring program," said Asher Genoot, CEO of Hut 8. "We continue to make the changes required for profitable, long-term growth."

"On March 6, we announced the closure of Drumheller. Our team relocated efficient miners to Medicine Hat and retired inefficient miners. We expect to see the impact of these changes on our operating efficiency moving forward."

"We also made significant progress on our new Salt Creek site and expect to fully energize the site in April, less than three months after breaking ground. We removed our miners from Kearney and Granbury and are relocating them to our owned sites, Salt Creek and Alpha, to be energized. While this decreased our deployed hashrate and Bitcoin production during the month, it gives us the crucial ability to maintain full control of our fleet and drive down our energy costs going into the halving."

"Lastly, site-level operating responsibilities transitioned to the new owner of Kearney and Granbury and we continue to transition ownership of all other activities at those sites. Under our agreement, we expect to continue generating revenue at these sites until the agreement is terminated at the end of April, at which point we are entitled to receive an early termination fee of $13.5 million."

"I look forward to sharing more updates on the impact of our restructuring and growth initiatives in the coming months."

March 2024	February 2024
Total energy capacity under management1	884 MW	926 MW
Total deployed miners under management2,3	241.6K	258.2K
Total hashrate under management2,4	25.5 EH/s	27.0 EH/s
Self-Mining5
Deployed miners2,6	55.0K	74.1K
Deployed hashrate2,7	5.4 EH/s	7.2 EH/s
Bitcoin produced8	231 BTC	292 BTC
Bitcoin on balance sheet9	9,102 BTC	9,110 BTC
Managed Services10
Energy capacity under management	767 MW	767 MW
Deployed miners under management2,11	210.5K	218.6K
Hashrate under management2	22.6 EH/s	23.4 EH/s
Hosting
Deployed miners under management2,11,12	76.8K	76.7K
Hashrate under management2,13	8.7 EH/s	8.7 EH/s

Notes:

(1) Includes all Self-Mining, Managed Services, and Hosting infrastructure, including 100% of the energy capacity at the King Mountain site, which is owned by the King Mountain JV in which the Company has a 50% membership interest and a Fortune 200 renewable energy producer has the remaining 50% membership interest (the "King Mountain JV").

(2) Average during the period for March 2024.

(3) Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site.

(4) Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the King Mountain site.

(5) Self-Mining operations for Hut 8 include 100% of operations at the King Mountain site.

(6) Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 46.1K during March and 65.1K during February.

(7) Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 4.5 EH/s during March and 6.3 EH/s during February.

(8) Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 192 BTC during March and 254 during February.

(9) As of month-end.

(10) The Managed Services figures reflected in this table include the Self-Mining and Hosting metrics from the sites where Hut 8's Managed Services business is an additional service layer in the operation of the site (at Charlie, Delta, Echo, and Hotel – site details below). As a result, the sum of the Self-Mining, Managed Services, and Hosting numbers will not add up to the "Total energy capacity under management", "Total deployed miners under management", and "Total hashrate under management" figures that are also reflected in the table.

(11) Miners are rounded to the nearest 100.

(12) 42.6K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner during both March and February.

(13) 4.7 EH/s under management net of Hut 8's joint venture partner's 50% share of the King Mountain JV during March and February.



Highlights:

• Hut 8 executed a series of strategic measures at Drumheller, closing the site, moving efficient miners to Medicine Hat, and retiring inefficient miners.
• Construction of the 63 MW Salt Creek site is progressing on schedule, and the Hut 8 team expects to energize miners in April.
• In preparation for the energization of Salt Creek, the Company removed all miners hosted at Kearney and Granbury and is relocating them to Salt Creek and Alpha
• Site-level operating responsibilities at Kearney and Granbury transitioned to the new owner and Hut 8 continues to transition ownership of all other activities.
• At Ionic Digital's Cedarvale site in Ward County, Texas, the Hut 8 team completed the initial phase of construction and is preparing to energize the site.

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