HUT Hut 8 Corporation

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Exhibit 99.1

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Hut 8 Reports Third Quarter 2024 Results

Strategic initiatives drive revenue growth, balance sheet strength, and competitive position across AI compute and Bitcoin mining

Earnings Release Highlights

MIAMI, FL, November 13, 2024 – Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today announced its financial results for the three and nine months ended September 30, 2024.

“This quarter, we executed several strategic initiatives designed to drive topline growth and strengthen our competitive position in both AI and Bitcoin mining," said Asher Genoot, CEO of Hut 8. "Key initiatives—including a ~15 EH/s colocation partnership with BITMAIN, the go-live of our GPU-as-a-Service vertical, and the elimination of significant interest expenses through the equitization of our Anchorage Digital loan—are projected to generate nine figures in new annualized revenue and reduce interest expenses by more than $17 million over three years.”

“As of October 31, 2024, our development pipeline exceeds 5 gigawatts, with more than 1.5 gigawatts under exclusivity. Three projects from this pipeline are particularly promising for large-scale AI data center projects. Collectively, they represent over 430 megawatts of capacity, with power delivery expected to be available before the end of 2025. We are actively exploring various commercial structures for these projects across a range of customer profiles.”

“Our long-term vision is to build a digital infrastructure platform that not only meets the demands of today but is also engineered for the technologies and breakthroughs of tomorrow. Our partnership with BITMAIN to develop and launch the U3S21EXPH at our 205 MW Vega site exemplifies our dual focus on technological and commercial innovation. From the outset, it was designed with high-density racks, U form factor chips, and direct liquid-to-chip cooling, bridging Tier I and Tier III data center architecture, which we believe will unlock long-term synergies in design, procurement, and construction.”

“Lastly, we expect the initial ASIC fleet upgrade we announced last week to improve our average fleet efficiency by 37% to 19.9 J/TH and increase our self-mining hashrate by 66% to ~9.3 EH/s in the first quarter of 2025. Combined with our option to purchase an additional ~15 EH/s of hosted machines at Vega, we now have a path to reach ~24 EH/s in self-mining capacity and an average fleet efficiency of 15.7 J/TH as early as Q2 2025.”

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Recent Developments and Third Quarter Highlights

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Key Performance Indicators

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Select Third Quarter 2024 Financial Results

U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) and Hut 8 Mining Corp. completed an all-stock merger of equals (the “Business Combination”) on November 30, 2023. USBTC was deemed the accounting acquirer in the transaction and, as a result, the historical figures in the Company’s income statement for the three and nine months ended September 30, 2023 reflect USBTC’s standalone performance. Results for the three and nine months ended September 30, 2024 reflect the performance of the combined company. With respect to the balance sheet, the ending balance for Q3 2024 is being compared to year-end 2023 balance, both of which reflect the combined company’s performance. All financial results are reported in US dollars.

Revenue for the three months ended September 30, 2024 was $43.7 million compared to $21.7 million in the prior year period, and consisted of $11.6 million in Digital Asset Mining revenue, $20.8 million in Managed Services revenue, $3.4 million in High Performance Computing – Colocation and Cloud revenue, and $7.9 million in Other revenue. Other consists primarily of power revenues from the Company’s natural gas power plants in Ontario, hosting service fees, GPU-as-a-Service revenue, equipment repair and equipment sales, if any.

Cost of revenue exclusive of depreciation and amortization for the three months ended September 30, 2024 was $17.6 million versus $13.5 million in the prior year period, and consisted of $7.3 million in cost of revenue for Digital Asset Mining, $2.8 million in cost of revenue for Managed Services, $2.6 million in cost of revenue for High Performance Computing – Colocation and Cloud, and $4.9 million in cost of revenue for Other.

Depreciation and amortization expense for the three months ended September 30, 2024 was $10.5 million compared to $4.5 million for the prior year period. The increase was primarily driven by depreciation and amortization of property and equipment acquired through the Business Combination and the purchase of natural gas power generation facilities in Ontario.

General and administration expenses for the three months ended September 30, 2024 were $16.2 million versus $4.2 million in the prior year period. This increase was driven by a $4.7 million increase in stock-based compensation, a $4.6 million increase in salary and benefit costs due to added headcount as part of the Business Combination and to support the Company’s growth, a $0.7 million increase in insurance expenses, a $0.7 million increase in professional fees, a $0.7 million increase in other G&A expenses, and a $0.6 million increase in sales tax expenses.

Net income for the three months ended September 30, 2024 was $0.9 million versus a net loss of $4.4 million in the prior year period. The Company recognized a $6.0 million gain on debt extinguishment related to the conversion of our Anchorage Loan into common stock of the Company in Q3 2024.

Adjusted EBITDA for the three months ended September 30, 2024 was $5.6 million, compared to $11.4 million in the prior year period. A reconciliation of Adjusted EBITDA to the most comparable GAAP measure, net income (loss), and an explanation of this measure has been provided in the table included below in this press release.

As of September 30, 2024, the Company’s Bitcoin held in reserve was 9,106 Bitcoin, which represented a market value of approximately $576.5 million, and the Company’s total cash was $72.9 million.

Conference Call

The Hut 8 Corp. Q3 2024 webcast will commence at 8:30 a.m. ET, today.

To join the live webcast, please visit this link.

Supplemental Materials and Upcoming Communications:

The Company has made available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website: https://hut8.com/investors. The Company uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

Analyst Coverage of Hut 8

A full list of Hut 8 Corp. analyst coverage can be found here: https://hut8.com/investors/analyst-coverage/.

Upcoming Conferences & Events:

About Hut 8

Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp.’s portfolio comprises twenty sites: ten Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking Information

This press release 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 information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the impacts of the Company’s initiatives on driving topline growth, strengthening the Company’s competitive position, generating nine figures of annualized revenue and reducing interest expense by more than $17 million over three years, the Company’s efforts to convert and commercialize assets capable of supporting AI compute at scale, the potential structures the Company is exploring with potential partners, the Company’s vision to build a digital infrastructure platform that meets the demands of today and the technologies and breakthroughs of tomorrow, the Company’s merging of traditional data center architecture with the flexibility and cost-efficiency of modular design at its Vega site to unlock long-term synergies, the improvement of the Company’s average fleet efficiency and increased self-mining hashrate as a result of its fleet upgrade and the option to purchase hosted machines, the expected timing of energization at Vega, the expected timing and revenue generation of the deployment of U3S21EXPH miners at Vega and the Company’s future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely,” or similar expressions.

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, failure to achieve intended benefits of power purchase agreements, potential for interrupted delivery, or suspension of the delivery, of energy to the Company’s mining sites, and other risks related to the digital asset and data center business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s subsequent quarterly reports and other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and under the Company’s EDGAR profile at www.sec.gov.

Adjusted EBITDA

In addition to results determined in accordance with GAAP, Hut 8 relies on Adjusted EBITDA to evaluate its business, measure its performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) before interest expense, income tax provision, depreciation and amortization, further adjusted by the removal of gains on the extinguishment of debt (if applicable), gain (loss) on derivatives, depreciation and amortization embedded in the equity in earnings (losses) from an unconsolidated joint venture, foreign exchange gain, gain on the sale of property and equipment (if applicable), non-recurring transactions, net income attributable to noncontrolling interest, and stock-based compensation expense in the period presented. You are encouraged to evaluate each of these adjustments and the reasons the Company’s board of directors and management team consider them appropriate for supplemental analysis.

The Company’s board of directors and management team use Adjusted EBITDA to assess its financial performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period.

Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in such presentation. The Company’s presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. There can be no assurance that the Company will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in the industry, the Company’s definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

Hut 8 Corp. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited, in USD thousands, except share and per share data)

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Adjusted EBITDA Reconciliation

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Contacts

Hut 8 Investor Relations
Sue Ennis
ir@hut8.com

Hut 8 Media Relations
media@hut8.com