Hut 8 Corp's September 2024 Operations: Growth and Earnings

Hut 8 Corp's September 2024 Operations: Growth and Financial Strength

19.5 EH/s and 762 MW under management in mining with path to 33.5 EH/s

Announced partnership with BITMAIN to host next-generation ASIC miner with purchase option to reach 20 EH/s of self-mining

GPU-as-a-service subsidiary generating revenue with first cluster fully online

Outstanding balance of Anchorage Digital loan equitized at price of $16.395 per share

Hut 8 Corp. (NASDAQ: HUT) has made significant progress in its operations as it leads the charge in the Bitcoin mining space and the burgeoning AI sector. With a current hash rate of 19.5 EH/s, Hut 8 is well-positioned to enhance its operations while exploring new revenue streams.

Asher Genoot, CEO of Hut 8, expressed enthusiasm for their advancements this month, highlighting a groundbreaking collaboration with Bitmain. The partnership aims to deploy a next-generation, DLC-cooled ASIC miner, which is projected to boost their hosting deployment by 15 EH/s at its Vega site. This initiative is set to generate around $135 million annually once fully operational, marking a notable step towards reaching their internal goal of 20 EH/s in self-mining capacity.

Furthermore, Hut 8’s GPU-as-a-service arm, aptly named Highrise AI, Inc., is already generating revenue, signaling its transition from a developmental phase to a revenue-generating operation. This development demonstrates Hut 8's innovative approach in diversifying its service offerings alongside traditional Bitcoin mining.

Operational Highlights: September 2024

The company’s operational highlights for September 2024 feature key milestones:

• Strategic partnership with BITMAIN to host the new U3S21EXPH ASIC miner, with an expected contribution to revenue of approximately $135 million on a fully ramped basis.
• Deployment of 1,000 NVIDIA H100 GPUs that started yielding revenue for Highrise AI.
• Successful equitization of a ~$38 million Anchorage Digital loan, providing liquidity with an equity conversion at $16.395 per share, reflecting a 51% premium based on the company’s 20-day VWAP.
• Continued construction progress at the Cedarvale site managed by Ionic Digital, on track for completion by December.

Operating Metrics and Performance

In terms of operational metrics, Hut 8 has remained steady, managing a total energy capacity of 762 MW. The company has successfully deployed 189.9K miners, a notable increase from previous months. Additionally, their hashrate management has grown, reflecting an increased capacity for self-mining operations.

The operational metrics revealing the sustained growth and performance include:

• Total energy capacity under management: 762 MW
• Total deployed miners: 189.9K
• Total hashrate managed: 19.5 EH/s
• Self-mining capacity: 58.6K miners deployed
• Bitcoin produced: 85 BTC
• Bitcoin on balance sheet: 9,106 BTC

Future Outlook and Events

Looking ahead, Hut 8 is excited about its upcoming participation in several industry conferences, which include opportunities to showcase its latest developments and foster partnerships:

• October 7–9, 2024: Yotta 2024
• October 15, 2024: USC Marshall Energy Business Summit 2024
• November 13–14, 2024: Cantor Fitzgerald Crypto, Digital Assets & AI Infrastructure Conference 2024
• November 19, 2024: Craig-Hallum 15th Annual Alpha Select Conference
• November 19, 2024: Benzinga Future of Digital Assets Conference 2024

About Hut 8

Founded as a prominent energy infrastructure operator and Bitcoin miner, Hut 8 operates across North America, and it has made considerable strides in building a diversified portfolio that includes 20 sites focused on Bitcoin mining, hosting, managed services, and traditional data center operations. This diverse footprint enables Hut 8 to adapt and thrive in the ever-evolving landscape of cryptocurrency and energy management.

Frequently Asked Questions

What recent partnerships has Hut 8 formed?

Hut 8 announced a significant partnership with Bitmain to host next-generation ASIC miners, marking a step towards increased self-mining capacity.

How much Bitcoin does Hut 8 currently hold?

Hut 8 holds 9,106 BTC on its balance sheet as of September 2024.

What revenue does Hut 8 anticipate from its hosting services?

Hut 8 expects around $135 million annually from its hosting services once fully ramped up.

What operational metrics did Hut 8 achieve in September 2024?

Hut 8 managed a total hashrate of 19.5 EH/s and deployed 189.9K miners.

What conferences will Hut 8 attend in the upcoming months?

Hut 8 will participate in notable industry conferences such as Yotta 2024 and the USC Marshall Energy Business Summit 2024.

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