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, supporting open and decentralized systems since 2018, is pleased to provide the following corporate update.

Mining Production Highlights for January 2022:

• 308 Bitcoin were mined, resulting in an average production rate of 9.93 Bitcoin per day;
  • Approximately 16% of Bitcoin production was from the Company’s fleet of GPU (Graphics Processing Unit) miners, being used to mine Ethereum, while receiving payouts in Bitcoin.The efficient nature of these GPUs, with minimal power requirements, resulted in an average cost of less than C$2,600 per Bitcoin;
• 100% of the self-mined Bitcoin for the month of January were deposited into custody, consistent with Hut 8’s Hodl strategy;
• Total Bitcoin balance held in reserve is 5,826 as of January 31, 2022;
• Installed operating capacity currently sits at 2.36 EH/s, a 17% increase from December 31, 2021.

Operations Updates for January 2022:

• During January 2022, the Company installed 6,317 MicroBT M30S and M31S+ miners, while retiring the older fleet of Bitfury Clarkes.
• Hut 8 has also advanced with respect to construction and development of the Company’s third data centre located in North Bay, Ontario.  The building structure is complete, floors are being poured imminently and racking is expected to commence later in February 2022.

“Our team is working hard deploying additional miners between our two Alberta-based sites, increasing overall efficiency and hashrate using existing capacity,” said Jason Zaluski, Head of Technology for Hut 8. “Our goal is to always utilize the most efficient miners we have, and we have been receiving and fully deploying our MicroBT units as they arrive, which speaks to the commitment and capability of our team on the ground, here in Alberta.”