Hut 8 Mining Holds 5,518 Self Mined Bitcoin in Reserve as of December 31, 2021

(Nasdaq: HUT) (TSX: HUT) ("Hut 8" or "the Company"), one of North America's largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, is pleased to provide the following corporate update.

Mining Production Highlights for December 2021:

276 Bitcoin were mined, resulting in an average production rate of 8.9 Bitcoin per day;

100% of the self-mined Bitcoin for the month of December were deposited into custody, consistent with Hut 8's Hodl strategy;

Total Bitcoin balance held in reserve is 5,518 as of December 31, 2021, a 97% increase from the prior year-end; and

Installed operating capacity currently sits at 2.0 EH/s, a 125% increase in hashrate from December 31, 2020.

Operations Updates for December 2021:

Purchased 2,505 MicroBT M30S machines from Foundry Digital that were already installed at the Company's site in Medicine Hat, Alberta. This fleet of miners added incremental hashrate of 228 PH/s during the month of December;

Installed 2,782 more efficient MicroBT M30S and M31S+ machines at the Company's site in Drumheller, Alberta;

Electrical upgrades are ongoing at the Medicine Hat site, which are necessary to allow for optimal hashrate efficiency from ongoing delivery of new MicroBT miners. These upgrades are on track to contribute an additional 450 PH/s in February 2022;

Development and construction of the Company's third mining site in North Bay, Ontario, is well-advanced. To date, the design of the ventilation system and the custom racking system have been completed, while construction of the data center structure is underway. The Company expects to have the North Bay site powered up in mid-Q1 2022 and fully operational at 35 MW by the end of Q1 2022, contributing approximately 850 PH/s of additional hashrate to our operations, which is expected to bring our total hashrate across all three sites to 3.35 EH/s by the end of Q1 2022.

Upgrade and development efforts in both Alberta and Ontario were delayed throughout December by supply chain issues, including unprecedented flooding in Western Canada, as well as ongoing COVID-19 labour challenges.

"This has been a tremendous year for our industry and I congratulate not only the Hut 8 team, but every single one of our peers who have worked hard to build meaningful operations in North America," said Jaime Leverton, CEO of Hut 8 Mining. "2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations. We are business-building technologists, with a focus on diversification, while keeping Bitcoin mining at our core. I have been driving innovation and transformation in the technology industry for over 20 years and have never been more excited or energized when looking forward to the year ahead."

Equipment Financing with Trinity Capital:

On December 30, 2021, Hut 8 Holdings Inc., a wholly owned operating subsidiary of the Company, entered into a US$30 million senior secured equipment financing term loan with Trinity Capital Inc ("Trinity Capital"). The equipment financing provides the Company with non-dilutive growth capital and was structured such that collateral support is limited to certain new MicroBT machines being installed at the Company's Medicine Hat, Alberta and North Bay, Ontario sites. The loan is repayable over its 3-year term and carries a 9.5% interest rate.

"We are pleased to achieve this financing milestone with Trinity Capital," commented Shane Downey, CFO of Hut 8. "This debt financing allows us to expand our capital structure and overall liquidity, while achieving an attractive cost of capital with limited security, in a traditional equipment financing arrangement."

"We are excited to partner with Hut 8, one of the largest digital asset miners on the continent," said Ryan Little, Managing Director of Equipment Financing at Trinity Capital. "Their combination of experienced leadership, vision and innovation makes Hut 8 unique, and we look forward to partnering with them on this journey forward."