Hut 8 Mining Production and Operations Update for April 2023

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 132 Bitcoin in the period ending April 30, 2023.

• 132 Bitcoin were generated, resulting in an average production rate of approximately 4.4 Bitcoin per day.
• Total balance of unencumbered Bitcoin held in reserve as of April 30 is 9,265.
• Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month.
• Hut 8 produced 50.77 BTC/EH in April.
• No Bitcoin were sold during the month.

• Remediation at our Drumheller, Alberta site progressed throughout the month:
  • High energy input levels at the site have been causing equipment failures that have materially reduced operations, which are currently at approximately 15% of our installed hashrate at the site.
  • In response, we began implementing firmware across all miner models designed to lower the power supply’s maximum output voltage, ensuring our equipment operates within safe limits.
  • Our team is actively engaged in repairing damaged equipment and restoring the hashrate to its optimal level.
  • We are closely monitoring the situation and will continue to make the necessary adjustments as needed to restore, safeguard, and optimize our equipment.
  • We are actively increasing repair staff, adding an additional repair centre shift, and have procured new hardware to expedite repairs and accelerate the speed at which we bring miners back online.
  • We expect to have the site restored in 10-12 weeks.
• Spikes in energy rates have created additional headwinds at Drumheller.
• Our team is actively pursuing options to operationalize the bulk of the approximately 7,000 miners that were removed from our North Bay site.

“We are very aware of the impact that the issues at Drumheller are having on the broader business: they are complex and challenging, but we have made meaningful progress and have a roadmap to remediation,” said Jaime Leverton, CEO of Hut 8. “We are laser focused on closing the proposed transaction with US Bitcoin Corp., which will both expand our overall production to 7.02 EH/s and provide access to additional energy markets.”