Hut 8 Corp. · NASDAQ:HUT
Hut 8 — Investor Presentation (January 2023)
35 slides from Hut 8's investor presentation, January 2023
Slide 1: Corporate Overview
Corporate Overview NASDAQ: HUT/TSX: HUT January 2023
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’). Certain statements in this presentation may constitute “forward-looking” statements. When used in or in relation to this presentation, such statements use words
Slide 3: Our Vision and Values
Cj HUTS Our Vision * High-performance computing pioneers advancing decentralized finance and the global digital economy Our Values ° We innovate fiercely ¢ We empower our people to drive measurable growth * We earn trust by operating with integrity * We collaborate relentlessly, together
Slide 4: Transforming computing to power the future of the Web
H JT 8 - Transforming computing to power the future of the Web ‘ Warket pioneer: Digital asset mining since 2018, aggressively scaling erations to drive shareholder value. ersified business profile: Poised to continue to profit from upward trends k asset classes; Bitcoin, High Performance Computing,
Slide 5: Chief Executive Officer Jaime Leverton
Cj HUTS Chief Executive Officer Jaime Leverton: data infrastructure transformation mandate specialist ¢ 20 years working in technology °* Telfer School of Management (IBM, Bell, BlackBerry, award for private sector National Bank, Cogeco Peer leadership in advanced 1, eStruxture) technology + MBA wit
Slide 6: Experienced management team
Experienced m 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 (o=0) VP Corporate VP Sales SVP Opera
Slide 7: Powering the future of digital asset mining, High Performance Computing, and Web 3.0
Powering the future of digital asset mining, High Performance Computing, and Web 3.0 Mining digital assets Working our stack Growing our HPC infrastructure services
Slide 8: Hut 8 is a leading vertically integrated Blockchain, Mining and HPC infrastructure company
Hut 8 is a leading vertically integrated Blockchain, Mining and HPC infrastructure company, powering the future of Web 3.0 while innovating within the enterprise data industry Gaming Peformance somputing IPG | Web 3.0 — EY ining _———— Modernized —e cloud Ff Blockchain Blockchain ‘a storage ESE
Slide 9: Hut 8 locations: mining, data centre, repair centre
r S MINING @ Drumheller, AB @ REPAIR CENTRE @ Medicine Hat, AB Medicine Hat, AB @ North Bay, ON @ Ha DATA CENTRE/ Tonto, ON WEB 3/GAMING ® Vancouver, B.C. ® Vancouver, B.C. ® Kelowna, B.C. @ Vaughan, ON eo Mississauga, ON J)
Slide 10: ESG is in Hut 8's DNA
ESG is in Hut 8’s DNA Raising awareness & building industry standards Hut 8’s Commitment: v Carbon-neutral by 2025 v Carbon credit due diligence process v¥ Maintaining executive management team gender diversity of more than 40% women ¥ Achieved at least 30% Board gender diversity v Transparent gover
Slide 11: Bitcoin offers both scarcity and Network Effect
Bitcoin offers both f wW scarcity and Network Effect The Network Effect or Metcalfe's Law states that the value of a network increases exponentially with each node/user added “SS Gold's value is driven by its scarce and finite supply G Huts 1
Slide 12: Bitcoin's opportunity in market share
Bitcoin's opportunity ie market shat It is still early in the adoption cycle. Global Equities @ $105.7T’ et sian tone cameo Q urs
Slide 13: Hut 8's Digital Asset Mining Business
Hut 8's Digital Asset Mining Business __- ) 9,086 v Diversified fleet of mining equipment for expansion into Total self'mined alternative forms of revenue, compute and flexible load i Bitcoin held in reserve —computing businesses — aa Y Ability to leverage Bitcoin stack to build additional lines of
Slide 14: Medicine Hat, Drumheller and North Bay sites
Medicine Hat Jv > 14,000 ASIC Mining Servers Installed ¥ 1.33 EH/s Installed Hash Rate Capacity v Currently receiving and installing monthly shipments of ASIC servers Vv Fleet consists of Current Generation MicroBT Whatminers * M30S++ * M31S “hitps:/hut8mining. com/2022/11/40/hut-8-reports-operating
Slide 15: Monitoring of energy markets and network metrics drives operational mining activity
e monitoring of energy markets and B network metrics drives ational mining activity id management platform ensures secure, healthy, and lly functioning ASIC fleet leverage onsite repair facility greatly decreases non- tive time duration and events nergy use provides opportunity to balance and stabil
Slide 16: Authorized MicroBT repair shop
Authorized Micro BT repairshop Vv 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 nee Ma
Slide 17: Hut 8's High Performance Computing Business
Hut 8's High Performance Computing Business Vv 36,000 square feet of geo-diverse data centre space Vv Scalable power capacity of 4.1 MW; 1.5 MW of expansion capacity available V Install in process for GPU based High Performance Computing platforms to support Al, Machine Learning and VFX workloads in
Slide 18: Nascent industry challenges
NON SN N SK Nascent industry Highly centralized; only a handful of data centres providing services SaaS-based pricing models Compliance concerns Compute demand Security risk
Slide 19: Operating Goals
Operating Goals Engage our teams @ Maintain existing customer base & Increase reliability and complement with drive organic growth and scalability of best industry talent our infrastructure Modernize product Pursue cost savings _— . - linear 2 through supplier network Maximize available capacities &
Slide 20: HPC and Partnerships
G nurs HPC and Partnerships
Slide 21: Our infrastructure enables our customers
Our infrastructure enables ou 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 Computing « Dynamic computing infrastructure backed by Nvidia A
Slide 22: Cloud Console, Storage, Kubernetes, Public & Private Cloud
Cloud Console + Web-based, user interface for customers to manage and scale their cloud resources on- demand Storage (IPFS) IPFS Archival Storage replicated across three Hut 8 data centres with additional replication available on request Supports decentralized projects that require scalable storage
Slide 23: Strategies to monetize idle compute
Hut 8 plans to utilize a variety of strategies to monetize idle compute POCs in Progress « A Cloud, Distributed Peer-to-Peer Marketplace for Cloud Compute. + PoW Mining (ETH, ETC, RVN, LTC): Idle compute can mine a variety of tokens. Workloads will shift based on mining profitability. Future POCs *
Slide 24: Bringing on-demand edge cloud services to Canadian customers
Bringing on-demand edge cloud services to Canadian customers Partnership Benefits a Xe * Global provider with established channel partners. Exposure to deals outside of our target markets (Asia, =18)) * Blockchain specific solutions and experience selling these deals (Solana) ¢ Brand recognition for
Slide 25: Financial Highlights
Cj HUTS Financial Highlights
Slide 26: Unencumbered Bitcoin stack of 8,687
Unencumbered Bitcoin stack of 8,687 on October 31, 2022 Asset class Market _Bitcoin's . omaety value share of v Provides flexibility in a bear market (US$B) market Y Bullish outlook on Bitcoin value v Adoption of Bitcoin as a % of portfolio strategy will continue to accelerate Bitcoin 3711 due to in
Slide 27: Opportunity to drive meaningful yield income into next bull run
Opportunity to drive meaningful yield income into next bull run ¥ Direct lending arrangements v Previously in place with Genesis & Galaxy v Annual returns in the 2-4% range ¥ Options trading — call overwriting strategy ¥ Alternatives being actively explored v Viewed as potentially compelling and fle
Slide 28: Income statement (CAD thousands)
(CAD thousands) September 30, 2022 December 31, 2021 Revenue $ 31,671 $ 50,341 Cost of revenue (45,611) (21,234) Gross (loss) profit (13,940) 29,107 General and administrative expenses (11,216) (10,836) Foreign exchange loss (844) (759) Loss on revaluation of warrant liability (2,917) - Amortization
Slide 29: Balance sheet (CAD thousands)
(CAD thousands) September 30, 2022 December 31, 2021 Assets Digital assets 223,420 323,946 Cash 33,021 140,127 Plant and equipment 207,365 96,126 Intangible assets and goodwill 13,234 = Deposits and prepaid expenses 83,025 159,863 Accounts receivable and other 1,853 647 Total assets 561,918 720,709
Slide 30: Share structure
TICKER TSX, NASDAQ: HUT Shares outstanding Warrants Options Restricted Stock Units DSU “As of November 10, 2022 196,219,122 15,314,468 480,000 3,012,029 256,315 G Huts
Slide 31: Appendix
Slide 32: Board of Directors
Bill Tai Chairman of Board Highly successful venture capitalist with 20+ start-up companies becoming publicly listed companies. Among first investors in Canva, Color Genomics, Dapper Labs, Safety Culture, Twitter, Wish.com and Zoom. Co-Founder and Chairman of Treasure Data, iAsiaWorks and Ipinfusion
Slide 33: How a Bitcoin transaction works
Someone requests a transaction Transactions combined to form a data block Transaction broadcasted to P2P computers (Nodes) New block added to existing Blockchain a Miners verify the transaction Transaction is complete i here
Slide 34: The Bitcoin ecosystem engine
The Bitcoin ecosystem engine A Miner A computer designed to solve a Mining A system that adds transactions mathematical algorithm & provides security to the Bitcoin blockchain; how new Bitcoins enter the market How it works a Be =) a L— Ss = C = \ Bitcoin transactions are pooled together in a “block
Slide 35: The path to profitable mining
The path to profitable mining Z\ Power Costs of (hashrate) Se Production Annual mining profitability Hut 8's hashrate (a i 625 52,560 (ez) (22 Hut 8's — ~ Network hashrate (z block Sac) ( (ez) (22, 4 nee * Rent, employees, public company expense, etc. Hut 8 Controls Hut 8 Doesn’t Control + Its hashr