Hut 8 Mining Corp. Reports Financial Results for Third Quarter 2018

TORONTO, Nov. 08, 2018 (GLOBE NEWSWIRE) — Hut 8 Mining Corp. (“Hut 8” or the “Company”) (TSXV: HUT) (OTCQX: HUTMF), the world’s largest open cryptocurrency mining association by handling ability and marketplace capitalization, today announces the financial results for the third entertain finished Sep 30, 2018. Hut 8 reports all amounts in Canadian Dollars unless differently stated.

— Record income of $17.7 million for Q3 and $36.4 million for the 9 months finished Sep 30, 2018. — Adjusted EBITDA of $7.1 million for Q3 and $18.7 million for the 9 months finished Sep 30, 2018. — Completion of designation and operation of 56 BlockBoxes in the City of Medicine Hat trickery (“CMH”), representing an boost of 67.2 MW of handling capacity. — Closing of US$16 million loan trickery with Galaxy Digital. — 1,978 bitcoin mined in Q3.

Three months Nine months finished finished Sep 30, Sep 30, 2018 2018 ————— ————— Revenue $ 17,654,901 $ 36,444,220 Site handling costs (8,727,399 ) (13,736,529 ) ————————————————— – ———– – – ———– – Mining distinction 8,927,502 22,707,691 Mining distinction domain 51 % 62 % ————————————————— – ———– – – ———– – Depreciation (17,440,571 ) (28,981,535 ) – ———– – – ———– – Gross distinction $ (8,513,069 ) $ (6,273,844 ) Gross distinction domain -48 % -17 % ————————————————— – ———– – – ———– – Expenses (2,618,779 ) (7,810,921 ) ————————————————— – ———– – – ———– – Net handling detriment (11,131,848 ) (14,084,765 ) Fair value detriment on re-measurement of digital resources (317,177 ) (6,146,449 ) Foreign sell benefit 251,123 248,673 Net financial shortcoming (245,976 ) (213,661 ) Net detriment and extensive detriment (11,443,878 ) (20,196,202 ) ————————————————— – ———– – – ———– – Adjusted EBITDA $ 7,176,479 $ 18,726,896 Adjusted EBITDA domain 41 % 51 % Net detriment per share – elementary and diluted $ (0.14 ) $ (0.25 ) Bitcoin mined 1,978 3,581 Cost per bitcoin (USD) $ 3,394 $ 2,977 ————————————————— – ———– – – ———– –

Q3 2018 was the first entertain for Hut 8 that enclosed the impact of mining operations at our CMH facility, which includes 40 BlockBoxes commencement in Jul 2018, together with an additional 16 BlockBoxes in Sep 2018, for an sum of 56 BlockBoxes at that site. As a outcome of this increasing capacity, Hut 8 constructed $17.7 million of income for the quarter, the largest ever for a singular entertain and a 126% boost from the before entertain income of $7.8 million.

The Company also available $7.2 million in Adjusted EBITDA, an 86% boost from the before entertain of $3.9 million, mostly as a outcome of increasing income from the new trickery at CMH. Efficiency of the ASIC chips used to cave bitcoin is approaching to boost during the colder months in Alberta, heading to softened opening in Q4 when compared to Q3.

Hut 8’s cost for mining a bitcoin in Q3 2018 was US$3,394, which is next the stream marketplace bitcoin cost of approximately US$6,500, creation Hut 8 among the lowest-cost miners of bitcoin in the world. This is reflected in the Company’s quarterly results, as the mining distinction for the entertain was $8.8 million with a mining distinction domain of 51%.

Hut 8’s mining distinction domain and practiced EBITDA margins were reduce during Q3 for two reasons: (i) the cost of bitcoin appreciated through the quarter, sum with increasing foe from other bitcoin miners (expressed through increasing network crush rate); and (ii) to a obtuse extent, record environment summer temperatures in Alberta that caused increases in the cost of electricity at the Drumheller facility, which trickery procures electricity from the Alberta grid. The impact of a prohibited summer was distant reduction at Hut 8’s incomparable trickery in CMH, which purchases the infancy of the electricity underneath agreement with bound prices.

“Our Drumheller trickery represents approximately 20% of our operations,” pronounced Andrew Kiguel, Chief Executive Officer of Hut 8. “This summer, a record-setting feverishness call in the range resulted in increasing electricity costs during certain periods. The outcome was increasing electricity costs at the Drumheller site by approximately $0.01 per Kilowatt hour on average. We are actively handling our bearing to marketplace prices through a number of different means. Despite this, Hut 8 achieved record income for Q3 and clever altogether margins.”

A discussion call has been scheduled to plead the Company’s third entertain financial results, hosted by CEO Andrew Kiguel and CFO Jimmy Vaiopoulos, starting at 10:00 a.m. ET today.

Date: Thursday, Nov 8, 2018 Time: 10:00 a.m. ET Dial-In: 1 (888) 465-5079, Canada 1 (888) 424-8151, US Passcode: 6281 943#

Hut 8 now operates a sum of 73 BlockBox Data Centers, including 56 BlockBoxes at the trickery in CMH, Alberta, each BlockBox with 1.2 MW of capacity, representing an sum of 67.2 MW of limit handling energy capacity. Hut 8 is now operating: (a) approximately 63.2 MW in CMH with a aim to strech full ability of 67.2 MW in Q1 2019; and (b) 17 BlockBoxes at the trickery in Drumheller, Alberta, representing an sum of 18.7 MW of limit handling energy capacity. Hut 8 has a sum limit handling energy ability of 85.9 MW and an normal tangible handling crush rate of over 640 Petahashes per second.

This benefit recover should be review in and with the Company’s Management Discussion Analysis, Financial Statements and Notes to Financial Statements for Q3 2018, which has been posted underneath the Company’s form on SEDAR at and are also available on the Company’s website at

Since commencement the mining operations in Dec 2017, Hut 8 has mined more than 4,200 bitcoin. As of Sep 30, 2018, Hut 8 had 85,228,858 shares outstanding, 965,000 options and 2,882,222 warrants.


Hut 8 Mining Corp., headquartered in Toronto, Canada is a cryptocurrency mining association determined through an disdainful arrangement with the Bitfury Group, the world’s heading full-service blockchain record company. Through the Bitfury Group, Hut 8 has entrance to a world-leading exclusive brew of hardware, program and operational imagination to construct, optimize and conduct information centres in low-cost and appealing jurisdictions.

Hut 8 provides investors with approach bearing to bitcoin, but the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors equivocate the need to emanate online wallets, handle income offshore and safely store their bitcoin. Hut 8 provides a secure and elementary way to invest.

Key investment highlights and FAQ’s:

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Hut 8 Corporate Contact:Andrew KiguelChief Executive OfficerTel: (647) 256-1992Email:

Hut 8 Media Contact:Natalie DavidsonTel: (778) 955-8012Email:

Investors Relations Contact:George AizpuruaVP, CommunicationsTel: 416.742.5600Email:

Non-GAAP Measures

This press recover presents certain non-GAAP (“GAAP” refers to Generally Accepted Accounting Principles) financial measures to support readers in bargain the Company’s performance. These non-GAAP measures do not have any standardised definition and therefore are doubtful to be allied to identical measures presented by other issuers and should not be deliberate in siege or as a surrogate for measures of opening prepared in suitability with GAAP. Management uses these non-GAAP measures to further the research and analysis of handling performance.

The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardised definition underneath GAAP.

EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)

— “EBITDA” represents net income or detriment incompatible net financial income or expense, income taxation or recovery, depreciation, and amortization. — “Adjusted EBITDA” represents EBITDA practiced to bar share-based compensation, satisfactory value detriment or benefit on re-measurement of digital assets, and costs compared with one-time exchange (such as inventory fees). — “Adjusted EBITDA margin” represents Adjusted EBITDA as a commission of revenue.

“Mining Profit” represents sum distinction (revenue reduction cost of revenue), incompatible depreciation. “Mining Profit Margin” represents Mining Profit as a commission of revenue.

“Cost per bitcoin” represents cost of income incompatible depreciation, divided by the number of bitcoin mined in the period.

Forward Looking Statements

Certain information in this press recover constitutes forward-looking information. In some cases, but not indispensably in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such difference and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that impute to expectations, projections or other characterizations of destiny events or resources enclose forward-looking information. Statements containing forward-looking information are not chronological facts, but instead paint management’s expectations, estimates and projections per destiny events.

Forward-looking information is indispensably formed on a number of opinions, assumptions and estimates that, while deliberate reasonable by Hut 8 as of the date of this press release, are theme to famous and different risks, uncertainties, assumptions and other factors that might means the tangible results, turn of activity, opening or achievements to be materially different from those voiced or pragmatic by such forward-looking information, including but not singular to the factors described in larger fact in the “Risk Factors” territory of the Filing Statement antiquated Mar 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at These factors are not dictated to paint a finish list of the factors that could impact Hut 8; however, these factors should be deliberate carefully. There can be no declaration that such estimates and assumptions will infer to be correct. The forward-looking statements contained in this press recover are made as of the date of this press release, and Hut 8 specifically disclaims any requirement to refurbish or change statements containing any forward-looking information, or the factors or assumptions underlying them, either as a outcome of new information, destiny events or otherwise, solely as compulsory by law.

Neither the TSX Venture Exchange nor the Regulation Services Provider (as that tenure is tangible in the policies of the TSX Venture Exchange) accepts shortcoming for the endowment or correctness of this release.

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