Slide 1: Corporate Overview Presentation for Investors December 2023
Corporate Overview Presentation for Investors December 2023
Slide 2: Cautionary Note Regarding Forward-Looking Information
Cautionary Note Regarding Forward–Looking Information This presentation includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward looking information”). All informatio
Slide 3: Our ambition is to maximize value at the intersection of energy and infrastructure
Our ambition is to maximize value at the intersection of energy and infrastructure
Slide 4: Hut 8's portfolio of businesses
4 Hut 8’s portfolio of businesses Digital Asset Mining Managed Services High Performance Hosting Computing HODL
Slide 5: Agenda
Agenda Overview and Outlook Vision and Operating Pillars Appendix
Slide 6: Scaled, vertically integrated operations
6 Scaled, vertically integrated operations Scale and scope drive cost advantages and strong return profile Stable, diversified revenue stream Approx. 30% of our pro forma revenue1 is from fiat-based business lines HODL treasury management Our strategy is to hold BTC to capture upside potential Manag
Slide 7: Our core businesses
7 Digital Asset Mining Managed Services HPC: Cloud & Colocation Other Digital Asset Mining HPC: Cloud & Colocation Overview and Outlook Managed Services Infrastructure design, construction, and operations HPC: Cloud & Colocation Powering cloud, colocation, and next gen workloads Digital Asset Mining
Slide 8: Digital asset mining sites key metrics
8 Digital asset mining sites1 6 Total installed capacity under management2,3 839 MW Total miners under management2,5 253,683 Revenue (twelve months ended June 30, 2023) 152.4M USD High Performance Computing data centers 5 Managed Services infrastructure under management3 680 MW Installed self-mining
Slide 9: 839 MW at the intersection of energy and infrastructure
9 Digital asset mining sites HPC: Cloud & Colocation data centers 42 MW Drumheller, AB 67 MW Medicine Hat, AB 50 MW Niagara Falls, NY 100 MW Kearney, NE 300 MW Granbury, TX 280 MW King Mountain, TX Vancouver, BC I Vancouver, BC II Kelowna, BC Vaughan, ON Mississauga, ON 839 MW at the intersection of
Slide 10: USBTC merger adds MW to Hut platform
10 Overview Overview and Outlook USBTC merger adds 730 MW to Hut 8 platform Legacy USBTC sites Niagara Falls, NY Kearney, NE Granbury, TX King Mountain, TX Total capacity 50 MW 100 MW 300 MW 280 MW Facilities 1 1 1 4 Owner Hut 8 Multibillion-dollar AUM sustainable infrastructure investment firm Mult
Slide 11: A holistic approach to optimizing our energy portfolio
11 • Calculates the breakeven point of each miner in real-time and dynamically adjusts energy consumption to maximize profitability • Supports both scheduled and real-time curtailment events • Enables seamless participation in ancillary service programs A holistic approach to optimizing our energy p
Slide 12: Addressable markets: Managed Services
12 Addressable markets A large, global market opportunity Managed Services: A pioneering, proven model Overview 1. Digital asset mining Partnerships to manage new and existing mining projects for third parties 2. Oil and gas1 Methane mitigation infrastructure development with O&G operators 3. Renewa
Slide 13: HPC: Cloud, colocation, and next gen workloads
13 Data centers (Tier I, II, and III) 5 Square feet of geo-diverse space 36,000 Power capacity 5.6 MW1 Solutions Colocation Cloud Services AI & Machine Learning Business Continuity Storage & Security • Focus on secondary markets where we drive competitive advantage • Purpose-built cloud backed by Ku
Slide 14: A clear path to 1 GW of energy under management
14 Total capacity under management (MW)1 October 2022 December 2022 May 2023 USBTC is selected to manage 300+ MW of mining assets in connection with the Celsius Network bankruptcy2 Managed Services secures its first client, a multibillion-dollar AUM sustainable infrastructure investment firm USBTC a
Slide 15: We are building across our portfolio of businesses
15 Managed Services 300+ MW Digital Asset Mining 800+ MW 1,000+ GPUs Purchase order for NVIDIA H100 GPU cluster has been executed High Performance Computing Total greenfield and M&A capacity under active negotiations or exclusivity We are building across our portfolio of businesses… Outlook Overview
Slide 16: Leveraging our infrastructure for AI
16 …and leveraging our infrastructure for AI Outlook Q2 2021 FY 2024 Purchase of first batch of NVIDIA GPUs Past Q4 2023 Design and purchase of NVIDIA H100 GPU cluster Present Q1 2022 Acquisition of five Cloud & Colocation data centers Target go-live and billing with first customers Future Overview
Slide 17: Agenda
Agenda Overview and Outlook Vision and Operating Pillars Appendix
Slide 18: Our ambition is to maximize value at the intersection of energy and infrastructure
Our ambition is to maximize value at the intersection of energy and infrastructure , We win by relentlessly lobal markets where pursuing three operating e is a clear opportunity pillars: innovation, create differentiated portfolio management, new sources of value and partnerships
Slide 19: We relentlessly pursue three operating pillars
• VISION AND OPERATING PILLARS 19 Innovation Leverage our proven capabilities to capture value at the cutting edge Portfolio management Create enduring shareholder value through disciplined portfolio structuring Partnerships Build a blue-chip brand that enables world-class growth partnerships Vision
Slide 20: A history of capturing market opportunities
20 A history of capturing market opportunities Innovation Vision and Operating Pillars Hut 8 pioneers the Managed Services model and scales it to 680 MW in <3 months Hut 8 forms the HPC: Cloud & Colocation business and acquires five data centers $474B Forecast AI infrastructure market size in 20332
Slide 21: We are powered by market-leading capabilities
21 • VISION AND OPERATING PILLARS We are powered by market-leading capabilities Innovation People Technology • Operator platform automates miner tracking and maintenance • Reactor platform algorithmically adjusts site energy consumption miner by miner Processes • Disciplined approach to portfolio st
Slide 22: We build enduring shareholder value
22 • VISION AND OPERATING PILLARS We build enduring shareholder value Portfolio Management Vision and Operating Pillars Approaches Revenue diversification Organizational structuring Risk-mitigating financing Uncorrelated revenue lines aim to protect against downside while maintaining upside potentia
Slide 23: Our approach is designed to mitigate downside risk
23 BTC Exposure Capex Requirements High No exposure Pure exposure Low HPC: Cloud & Colocation Self-mining Managed Services Repair Center HODL Treasury Management Our approach is designed to mitigate downside risk… Portfolio Management Hut 8 portfolio Vision and Operating Pillars Hosting
Slide 24: Why we HODL
• VISION AND OPERATING PILLARS 24 Mitigate fiat debasement risk Hedge against the failure of traditional banking systems Mitigate volatility risk Reduce exposure to short-term BTC price volatility Capture upside potential Increase balance sheet value as market enters cycles of diminished BTC supply
Slide 25: We win by forging powerful partnerships
25 280 MW3 310 MW5 Joint Ventures M&A2 Bankruptcy auction victory resulting in acquisition of 50% of King Mountain JV Partnership to acquire four power plants in Validus Power Corp insolvency Managed Services 400 MW3 Restructuring¹ 300+ MW4 RFP-driven selection to manage two mining sites in Compute
Slide 26: Agenda
Agenda Overview and Outlook Vision and Operating Pillars Appendix
Slide 27: Site-by-site operations
27 Site-by-site operations Infrastructure Site Capacity1 Digital Asset Mining Managed Services Hosting HPC Demand Response Drumheller, AB 42 MW ✓ ✓ Medicine Hat, AB 67 MW ✓ Niagara Falls, NY 50 MW ✓ ✓ ✓ Kearney, NE 100 MW ✓ ✓ ✓ Granbury, TX 300 MW ✓ ✓ ✓ King Mountain, TX 280 MW ✓ ✓ ✓ ✓ Vancouver, BC
Slide 28: Celsius restructuring transaction
28 Celsius NewCo Hut 8 Hut 8 Management Agreement Celsius restructuring transaction Recent Transactions Transaction structure Appendix Transaction overview1 Management agreement with Celsius NewCo • Hut 8 won a bankruptcy auction to restructure and manage the former assets of Celsius Network • Hut 8
Slide 29: Macquarie transaction support agreement
29 Iroquois Falls Kingston North Bay Kapuskasing 120 MW 40 MW 110 MW 40 MW Macquarie transaction support agreement1 Recent Transactions Acquisition targets Appendix • Hut 8 has signed transaction support agreement with Macquarie Equipment Finance Limited • Partnering in bid attempt to acquire four p
Slide 30: Executive leadership team
30 • APPENDIX Jaime Leverton Chief Executive Officer, Director • Veteran technology executive of 20+ years across leading companies: IBM, Bell, BlackBerry, National Bank, Cogeco Peer 1, and eStruxture Data Centers • Member of Women in IT Channel Hall of Fame • Recipient of Telfer School of Managemen
Slide 31: Functional leaders with context-specific expertise
31 • APPENDIX Functional leaders with context-specific expertise Senior Leadership Team Appendix Matt Prusak Chief Commercial Officer Sue Ennis Head, Investor Relations Erin Dermer Senior VP, Communications and Culture • Former Chief Commercial Officer at US Bitcoin Corp • Former Chief Business Offi
Slide 32: Board of Directors
32 All logos, trademarks, and brand names used belong to their respective owners Veterans of technology, energy, finance, and government Board of Directors Appendix Bill Tai Chairman Mayo Shattuck III Independent Director Amy Wilkinson Independent Director Rick Rickertsen Independent Director Alexia
Slide 33: Thank you
Thank you Sue Ennis, Head of Investor Relations sue@hut8.io