Hut 8 Partners with the Bitfury Group to Establish North America’s Largest Bitcoin Datacenters

VANCOUVER, British Columbia, Dec 04, 2017 (BUSINESS WIRE) —
Hut8 Mining Corp. (“Hut 8”) today announced it is
partnering with the Bitfury Group ()Bitfury”) to acquire,
install, maintain and operate North America’s largest bitcoin mining
datacenters.

This press release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20171204005288/en/

Bitfury, the world’s leading full-service blockchain technology company,
will exclusively provide to Hut 8 a bitcoin mining solution comprised of
a proprietary mix of hardware, software, installation and operational
services.


“This partnership signifies the growing demand for access to Bitcoin
investment opportunities across North America,” said Sean Clark, CEO of
Hut 8. “Bitfury’s market share, unmatched computing power, and ability
to scale, in combination with a Board of Directors that former hedge
fund manager Michael Novogratz and renowned venture capitalist Bill Tai
have both agreed to serve on, offers Hut 8 an extreme advantage in a
competitive marketplace.”

“We are excited to partner with Hut 8 to expand our activities in the
strategic North America market,” said Bitfury CEO, Valery Vavilov. “We
believe there is a tremendous opportunity to establish North America as
one of the most important crypto-currency mining hubs in the world.”

KEY BACKGROUND

Operating since 2011, Bitfury is the world’s largest bitcoin miner
outside of China and holds approximately 11 percent of the technology’s
market share. Bitfury manufactures its own Application Specific
Integrated Circuit (ASIC) chips, which both removes reliance on third
parties and increases performance and translates to lower costs, less
space and quieter operations. Bitfury’s portable, containerized
datacenter product, BlockBox AC, allows for significantly shortened
set-up time required to establish effective bitcoin mining on a
commercial scale.

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Upon completion of the partnership, Hut 8 will own and operate what is
believed to be the largest cryptocurrency mining farm in North America.
In phase I, Hut 8 will gain immediate control over 22 bitcoin mining
datacenters operating at 24.2 MW / 165 PH/s. In Q1 of 2018, a public
listing on a Canadian stock exchange is expected and phase II of the
deal is scheduled to be completed, increasing control to an additional
35 datacenters operating at 38.5 MW / 262.5 PH/s.

Through a combination of existing Bitfury sites and new installations,
Hut 8 intends to scale rapidly throughout 2018 with installed capacity
set to exceed 60 MW. Hut 8 also maintains the exclusive option to
acquire additional datacenters from Bitfury in North America.

From today, Hut 8 is offering approximately 13,200,000 shares on a
private placement basis through GMP Securities L.P., equal to
approximately CAN$33,000,000, the proceeds from which will be applied
towards the funding of phase I of the transaction described above.

Investors have the option of purchasing shares in this private placement
round with bitcoin.

About Hut 8

Hut 8 is a bitcoin mining company led by CEO Sean Clark that gives
shareholders access to the price appreciation of bitcoin and the
emerging blockchain economy. The following individuals have consented to
act as the directors of Hut 8: Michael Novogratz, George Kikvadze, Bill
Tai, Marc van der Chijs and Valery Vavilov.

About The Bitfury Group

Bitfury is the leading full-service blockchain technology company and
one of the largest private infrastructure providers in the blockchain
ecosystem. Bitfury develops and delivers both the software and the
hardware solutions necessary for businesses, governments, organizations
and individuals to securely move an asset across the Blockchain. Bitfury
recently launched Exonum, a custom framework that helps individuals,
businesses and governments securely and easily bring their ideas and
solutions to life.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking statements
under applicable securities laws. Any statements that are contained in
this news release that are not statements of historical fact may be
deemed to be forward-looking statements. Forward looking statements are
often identified by terms such as “may”, “should”, “anticipate”,
“expect”, “potential”, “believe”, “intend” or the negative of these
terms and similar expressions. Forward-looking statements in this news
release include, but are not limited to, statements with respect to Hut
8’s expected competitive advantages in the marketplace and its ability
to scale, the future demand for Bitcoin and Bitcoin related investment
opportunities, expectations related to operational and capital
expenditures and the ability of Hut 8 and Bitfury to control same; the
timing of any future public listing of Hut 8 on a Canadian stock
exchange, the timing for completion of any future acquisition of data
centers, the business goals and objectives of Hut 8 generally, and other
forward-looking information concerning the intentions, plans and future
actions of the parties to the transactions described herein and the
terms thereon.

Forward-looking statements necessarily involve known and unknown risks,
including, without limitation, risks associated with general economic
conditions; adverse industry events; marketing costs; loss of markets;
future legislative and regulatory developments involving Bitcoin and
other cryptocurrencies; inability to access sufficient capital from
internal and external sources, and/or inability to access sufficient
capital on favourable terms; costs related to electrical consumption;
the volatility of Bitcoin and other cryptocurrency prices; income tax
and other taxation matters; the ability of Hut 8 to implement its
business strategies; competition; currency and interest rate
fluctuations and other risks as described in offering memoranda related
to the private placement described herein.

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Readers are cautioned that the foregoing list is not exhaustive. Readers
are further cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such information,
although considered reasonable by management at the time of preparation,
may prove to be incorrect and actual results may differ materially from
those anticipated.

Forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171204005288/en/

SOURCE: Hut 8 Mining Corp.

Bitfury:

John Mercurio, 202-868-0900
john.mercurio@bitfury.com
or
GMP:
Andrew
Kiguel, 416-258-3148
andrewk@gmpsecurities.com
or
Hut
8 Media:

Brix Media Co
Natalie Davidson, 604-215-2749
Natalie@brixmediaco.com

Copyright Business Wire 2017

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