Hut 8 Announces Update to Operations, New Auditor

TORONTO, ON — Hut 8 Mining Corporation, one of the world’s largest public crypto-currency mining companies by operating capacity and market capitalization, has announced via press release new operational standards as well as a change of its auditor.

As announced previously in a press release from November 12, 2018, Hut 8 successfully completed the purchase of a dozen BlockBox AC data centers from Bitfury in December 2018. The new BlockBox AC data centers utilize the Bitfury Clarke ASIC chips, manufactured by Bitfury. The performance of these new data centers has exceeded expectations by producing 12.2 Petahash per second (“PH/s”) per BlockBox AC data center, but consuming approximately 1.1 megawatts of electricity instead of the 12 PH/s and 1.2 megawatts expected prior to installation.

New SquareAs a result of electricity optimization across its sites, Hut 8’s 85 BlockBox AC data centers are consuming, on average, 1.12 megawatts each, while still producing an aggregate output of approximately 784 PH/s. Hut 8 is pleased to consume less electricity without impacting their mining output. As a result, Hut 8’s current aggregate operating electrical consumption is approximately 95.2 megawatts, instead of the previously expected 100.2 megawatts of consumption, across its 85 Blockbox AC data centers.

Hut 8 has also changed its auditors, from MNP LLP to Dale Matheson Carr-Hilton Labonte LLP. There are no “reportable events” (as the term is defined in National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”)) between the Company and the Former Auditor. In accordance with NI 51-102, the notice of change of auditor, together with the required letters from the Former Auditor and the Successor Auditor, have been reviewed by the board of directors of the Company and filed on SEDAR.

Since beginning operations in December 2017, Hut 8 has mined over 5,600 bitcoins. Hut 8’s current capital structure consists of 85,359,833 common shares outstanding, 2,882,222 warrants and 965,000 options. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 85 BlockBox AC data centers with current operating capacity of 95.2 megawatts and 784 PH/s.

ABOUT HUT 8 MINING CORP: Hut 8 Mining Corp., headquartered in Toronto, Canada, is a crypto-currency mining company established through an exclusive arrangement with the Bitfury Group, the world’s leading full-service blockchain technology company. Through the Bitfury Group, Hut 8 has access to a world-leading proprietary mix of hardware, software and operational expertise to construct, optimize and manage data centers in low-cost and attractive jurisdictions. Hut 8 is led by a team of industry experts and intends to provide investors with exposure to blockchain processing infrastructure and technology along with underlying cryptocurrency rewards and transaction fees.