Hut 8 Reports Operating and Financial Results for Q 3 2022.

TORONTO: 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, is pleased to announce its financial results for the quarter ended September 30, 2022 ("Q3 2022"). All dollar figures are in Canadian Dollars ("CAD"), unless otherwise stated.

"Throughout the quarter, we remained laser focused on optimizing our operations across both mining and high performance computing, while continuing to grow our HPC capabilities and attract new Blockchain customers," said Hut 8 CEO Jaime Leverton. "With the largest self-mined unencumbered Bitcoin stack of any publicly traded company, we continue to mine at modest costs despite fluctuating power prices, increasing network difficulty, and sustained pressure on the price of Bitcoin."

"Our conservative approach to managing our balance sheet continues to be paramount for us at Hut 8," said Shane Downey, CFO of Hut 8. "Notably, we improved our mining capacity by 10% while reducing the average cost to mine each Bitcoin by 29%, when compared to the second quarter of 2022. We remain steadfastly committed to effectively managing capital in today's challenging environment and believe we are well positioned to deliver shareholder value in 2023 and beyond."

Q3 2022 HIGHLIGHTS

Revenue decreased by $18.6 million to $31.7 million in Q3 2022 compared to $50.3 million for the quarter ended September 30, 2021 ("Q3 2021").

The Company mined 982 Bitcoin in Q3 2022, an 8.5% increase compared to Q3 2021 due to an increase in hashrate from the expansion of the Company fleet of miners and mining activities.

Hut 8's high performance computing operations generated $4.4 million of revenue in the quarter, the majority of which is monthly recurring revenue.

The Company installed an aggregate of 2,205 new MicroBT M30S, M30S+, M30S++ and M31S+ miners at its three mining sites during Q3 2022. The installation of these miners brought Hut 8's operating capacity to 3.07 EH/s as of September 30, 2022, an increase of 10% in hashrate compared to June 30, 2022.

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(i) EBITDA, Adjusted EBITDA and mining profit are non-IFRS performance measures; refer to the Non-IFRS Measures section of this press release

FINANCIAL SUMMARY

For the periods ended September 30

Three Months Ended

Nine Months Ended

(CAD thousands, except per share amounts)

2022

2021

2022

2021

Operating results

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