Hut 8 Corp. · NASDAQ:HUT
Hut 8 — Investor Day (September 2022)
30 slides from Hut 8's investor day presentation, Sep 20, 2022
Slide 1: Analyst Day Presentation
Analyst Day Presentation NASDAQ: HUT/TSX: HUT September 20, 2022
Slide 2: Disclaimer
Disclaimer This management presentation is intended to provide an overview of the business of Hut 8 Mining Corp. (“Hut 8” or the “Company”). This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or subsc
Slide 3: Welcome!
G nurs Welcome! Jaime Leverton CEO
Slide 4: Agenda
Agenda Welcome Jaime Leverton, CEO Corporate Overview Sue Ennis, VP of Corporate Development Operations Overview & HPC Partnerships James Beer, SVP Operations & Stephen Kwok, Director Strategic Technologies Financial Overview Shane Downey, CFO Q&A Site Tour
Slide 5: Experienced management team
Experienced management team Seasoned and experienced executive management team with diversified expertise across the technology, cloud and data centre management, blockchain, digital assets, energy, and infrastructure industries Jaime Leverton Sue Ennis Josh Rayner James Beer CEO VP Corporate Develo
Slide 6: Corporate Overview
Corporate Overview Sue Ennis Vice President, Corporate Development
Slide 7: Our growth engines
Our growth engines Powering the future of High Performance Computing and Web 3.0 Growing our HPC Mining digital assets Working our stack infrastructure services
Slide 8: The vision for Hut 8's business model
The vision for Hut 8’s business model Grow Earn revenue HPC/data on Bitcoin centre stack business Generate dynamic HODL Bitcoin internal revenue Fund proprietary mining business
Slide 9: The current constraints for Web 3.0 enterprises
The current constraints for Web 3.0 enterprises Nascent industry Highly centralized; only a handful of data centres providing services SaaS-based pricing models Compliance concerns Compute demand Security risk
Slide 10: A unique portfolio of data infrastructure assets
A unique portfolio of data infrastructure assets Gaming Hut 8 is a leading High vertically integrated Performance Computing Blockchain and HPC F/X & Render infrastructure company, powering the future of Web 3.0 Web 3.0 while innovating within the enterprise Mining Blockchain storage data industry Mo
Slide 11: ESG is in Hut 8's DNA
ESG is in Hut 8’s DNA Raising awareness & building industry standards Hut 8’s Focus(5): Carbon-neutral by 2025 Carbon credit due diligence process Maintaining executive management team gender diversity of more than 40% women At least 30% Board Diversity Transparent Governance Renewable e
Slide 12: Location is Key
Location is Key MINING Drumheller-Alberta Med Hat-Alberta Map of Data & Mining North Bay-Ontario sites across Canada DATA CENTRE/ WEB 3/GAMING Kelowna-BC Vancouver-BC (2) Vaughan-Ontario Mississauga-Ontario
Slide 13: Operations Overview
Operations Overview James Beer Senior Vice President, Operations Stephen Kwok Director, Strategic Technologies
Slide 14: Hut 8's High Performance Computing Business
Hut 8's High Performance Computing Business ✓ 36,000 square feet of geo-diverse data centre space 5 Multi-Tier Data Centres Kelowna, B.C. ✓ Scalable power capacity of 4.1 MW; 1.5 MW of expansion capacity Vancouver, B.C. (2) available Mississauga, ON Vaughan, ON ✓ Install in process for GPU based Hig
Slide 15: HPC Operations
HPC Operations Operating Goals 1. Engage our teams Maintain existing customer base & Increase reliability and scalability and complement with drive organic growth of our infrastructure best industry talent 2. Modernize Pursue cost savings Maximize available capacities product line-up through supplie
Slide 16: Flagship HPC Centre: Kelowna
Flagship HPC Centre: Kelowna 30,000 sq ft 300 cabinet capacity 6MW electrical entrance design $0.0867/kWh w/95% renewables mix (Fortis) N+1 infrastructure throughout Diverse network fibre entrances Free cooling architecture
Slide 17: Hut 8's Digital Asset Mining Business
Hut 8's Digital Asset Mining Business ✓ Diversified fleet of mining equipment for expansion into 8,111 Total self-mined Bitcoin alternative forms of revenue, compute and flexible load held in reserve computing businesses ✓ Ability to leverage Bitcoin stack to build additional lines of revenue ✓ 1% o
Slide 18: Digital Asset Mines
Digital Asset Mines Medicine Hat Drumheller North Bay ✓ > 13,000 ASIC Mining Servers Installed ✓ > 10,000 ASIC Mining Servers Installed ✓ > 8,700 ASIC Mining Servers Installed ✓ 1.26 EH/s Installed Hash Rate Capacity ✓ .896 EH/s Installed Hash Rate Capacity ✓ 0.824 EH/s Installed Hash Rate ✓ Current
Slide 19: Hut 8's Digital Asset Mining Value Drivers
HUT 8's Digital Asset Mining Value Drivers ✓ Active monitoring of energy markets and ₿ network metrics drives operational mining activity ✓ Unified management platform ensures secure, healthy, and optimally functioning ASIC fleet >33k Installed Latest Generation ASIC Miners ✓ Ability to leverage ons
Slide 20: Authorized Micro BT repair shop
Authorized Micro BT repair shop ✓ Generates revenue with respect to both in and out of warranty repair services for MicroBT clients in North America and Northern Europe ✓ Access to replacement machine parts at cost ✓ Improved supply chain proximity ✓ On-site repairs reduce downtime for Hut 8 miners
Slide 21: HPC and Partnerships
G nurs HPC and Partnerships
Slide 22: We built the Platform so our customers can build the Future
We built the Platform so our customers can build the Future We drive growth, innovation and market share by delivering the custom, composable and scalable infrastructure enterprise customers need, to grow, build and protect their business on the web High Performance Node as a Service (NaaS) Enterpri
Slide 23: Product Development Q4 2022
Product Development Q4 2022 Cloud Console Storage (IPFS) Kubernetes Public & Private Cloud • Web-based, user • IPFS Archival Storage • Kubernetes will provide • Leverage composable interface for customers replicated across three Hut 8 customers an infrastructure to build and to manage and scale Hut
Slide 24: Monetizing Idle Compute
Monetizing Idle Compute Hut 8 plans to utilize a variety of strategies to monetize idle compute POCs in Progress Future POCs • A Cloud, Distributed Peer-to-Peer Marketplace for • Market leader in low-cost GPU rentals. Cloud Compute. • Web3 Blockchain infrastructure for Video, Media, • PoW Mining (ET
Slide 25: Zenlayer & Hut 8
Zenlayer & Hut 8 Bringing on-demand edge cloud services to Canadian customers Partnership Benefits • Global provider with established channel partners. Exposure to deals outside of our target markets (Asia, EU) • Blockchain specific solutions and experience selling these deals (Solana) • Brand recog
Slide 26: Financial Overview
Financial Overview Shane Downey CFO
Slide 27: Successfully navigating the bear market
Successfully navigating the bear market Conservative approach to capitalization Modest use of debt C$29.8 million as of June 30; Debt to Equity ratio of 0.06 : 1 Unencumbered digital asset inventory Aligning capital commitments with capital availability Moderated capex investments in lat
Slide 28: HODL Strategy
HODL Strategy Unencumbered Bitcoin stack of 8,111 Asset Class Market Value % of Bitcoin (U$ billion) Market Value Provides flexibility in a bear market Bitcoin 371 1 Gold 11,414 2 3.2% Continued bullish outlook on Bitcoin Global Equities 108,000 3 0.3% Bitcoin moving up from 3.2% of Gold mar
Slide 29: 'Work-the-Stack' Strategy
‘Work-the-Stack’ Strategy Opportunities to drive Yield income Opportunity to drive Direct lending arrangements meaningful yield income into Previously in place with Genesis & Galaxy next bull run Annual returns in the 2-4% range BTC Possible Yield Income Options trading – call overwriting
Slide 30: Q&A
Q&A