HUT 8 MINING Pioneering the Global Digital Economy

When the legendary Alan Turing created the Bombe, a machine that cracked the Enigma code during World War II, his inspirational, world-changing success story unfolded in a modest single-storey wooden building called Hut 8, at Bletchley Park in England. It is in honour of Turing, whose innovations in codebreaking laid the foundation for Blockchain as it stands today, that Hut 8 Mining is so named.

Having first started supporting open and decentralized systems in 2018, Hut 8 has since established itself as one of North America’s largest innovationfocused digital asset miners. Located in energy rich Alberta and North Bay, Ontario, Canada, Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined Bitcoin than any other crypto miner or publicly traded company globally.

Through demonstrating rapid growth and a stellar balance sheet, Hut 8 became the first publicly traded miner on the TSX and the first Canadian miner to be listed on The Nasdaq Global Select Market.

Hut 8’s team of business building technologists are believers in decentralized systems, stewards of powerful industry-leading solutions, and drivers of innovation in digital asset mining and high-performance computing, with a focus on ESG alignment. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

In January 2022, Hut 8 announced its acquisition of TeraGo Inc’s five cloud and colocation data centres located across Canada. This acquisition constitutes a pivotal moment in Hut 8’s positioning as an innovative and diversified player in the digital asset and high-performance computing sectors, serving to set Hut 8 apart from its peers.

As highlighted at the time by CEO Jaime Leverton:

“As a team of Bitcoin and blockchain bulls, we are thrilled with the transformative growth opportunity this investment provides Hut 8. The acquisition of this complementary business diversifies Hut 8’s operations with a discrete, steady cash flow, that is uncorrelated to digital asset mining. This acquisition also puts us at the forefront of the accelerated digitization of industry, establishing us as the bridge between traditional and nascent iterations of high-performance computing. Our unconventional approach to revolutionizing conventional assets serves to drive Hut 8’s growth, innovation and market share in the high-performance computing, blockchain, and Web 3.0 industries.”

Hut 8 has been committed to building its connection with Barbados since 2018.

Establishing a presence in Barbados has proven to be an important and positive initiative for Hut 8. We have been made to feel very welcome from the start and we have been impressed by the island’s culture of professional excellence and innovative spirit and openness to new technologies. Through links with the country at our own Board level, we have been able to tap into several valuable local connections and meaningfully expand our reach in both the private and public sector. With our parent company based in Canada looking to expand globally, it has been essential for us to get it right first time. To do that we needed suitably capable people to work with. In that regard, I’d like to make special mention of FT Legal and its founder Tara Frater. Her legal office has been instrumental in getting everything started and running smoothly. Tara has a great handle on the local business culture and, in particular, the Barbados regulatory framework. More recently we were also introduced to Dr. Annalee Babb, whose vast experience and knowledge of the innovation eco-system in Barbados has helped guide us towards a range of economic and innovation opportunities, thereby enabling Hut 8 to consider future growth and innovation objectives. Dr. Babb equally understands the importance of regulatory certainty and confidence. In the digital asset ecosystem this couldn’t be more important and we are looking forward to engaging the government and its innovation-focussed policy makers as we scale up.

We found it very helpful that our Canadian business culture has meshed seamlessly with the business culture of Barbados, which is not always a guarantee when companies engage globally. Integrity is a key characteristic of our company, so it is absolutely essential for us to only work alongside countries and governments that share our same values. It is equally vital that we have a government that establishes a solid regulatory framework, with suitable legislation and pro-digital asset, pro-blockchain innovation policies. That is fundamentally imperative. And we’ve found all of that in Barbados.

I am happy to say that Barbados is an essential business connection for the Hut 8 outside of Canada. And that is particularly encouraging and exciting when our company is fortunate to be in a moment when we are scaling up.

Sue Ennis Vice President Corporate Development

One of the major reasons why we, and other companies with an innovative lens, find Barbados so attractive is because of the leadership the country has shown in embracing innovation. In particular, the island’s openness to the maturation of web 3.0 and the Metaverse. Barbados now has the world’s first e-Consular Services in the Metaverse, and that is a very exciting advancement for all involved.

With ambitions to be a global leader in our industry, we at Hut 8 consider ourselves to be one of the world’s most innovative miners, not only in terms of the technology we employ, but also as leaders in the ESG space. Our mining centres mine efficiently and in an environmentally conscious manner through an abundance of gas, wind and green energy. We have industry leading power purchase agreements and operate in areas with freezing cold temperatures and high winds, which are optimal mining conditions.

We also have a strong governance ethos. Our Board is 40% female, coupled with 50% female Executive Leadership. That is very striking for a Public Company in any sector in the world. And we’re not just on top of the trends — we are setting them. Our CEO, Jamie Leverton, has been in the high performance compute and distressed data infrastructure space for 20 years, and now she’s heading up a nascent technology enterprise. Nobody else in the sector has her background. Jamie saw the potential in 2020 and made the move. That is a major competitive differentiator for Hut 8. We have achieved visionary alignment in so many ways.

The progressive steps we have taken with Barbados will undoubtedly draw a lot of attention back home in Canada and elsewhere around the world. And that will help us gain the additional momentum we need to keep developing our business.

The fact is, Barbados is now at the forefront of our sector. So, we are very grateful for the support this country has given our company. www.hut8mining.com