Hut 8 Announces Leadership Transition and Amendment of Key Agreements with Bitfury
Toronto, Ontario--(Newsfile Corp. - January 28, 2020) - Hut 8 Mining Corp. (TSX: HUT) (OTCQX: HUTMF) ("Hut 8" or "the Company"), one of the world's largest publicly listed bitcoin mining companies by operating capacity and market capitalization, announces that Andrew Kiguel will be stepping down from his role as Chief Executive Officer. Andrew will remain the Chief Executive Officer and a member of the Board of Directors until a successor is appointed. The company will begin a thorough search and selection process for a successor.
"As a co-founder, it's been a privilege to help build Hut 8 from a start-up to a category-leading company that's generated over $115 million in revenue since 2018. We've accomplished significant milestones, including raising over $100 million in debt and equity and the completion of our 67 MW facility in Medicine Hat. Hut 8 survived the 2018 bitcoin price collapse and emerged the world's largest publicly traded bitcoin miner," said Andrew Kiguel. "In addition, Hut 8 was the first cryptocurrency company to list on the Toronto Stock Exchange in 2019."
"I would like to thank Andrew for his contribution towards building Hut 8 as an industry leader," said Bill Tai, Chairman of the Board of Hut 8. "Andrew and the board will work together through the transition period to ensure that Hut 8 continues its strategy as an efficient bitcoin miner and maintains its position as an industry leader."
Hut 8 has also entered into a non-binding term sheet with Bitfury Holding BV ("Bitfury") to amend key agreements between the two companies with the intent of reducing operating costs and providing more autonomy to Hut 8 in managing its Canadian operations. In addition, Hut 8 will have improved flexibility to work with outside equipment vendors and Bitfury will have the ability to work with other miners in North America.
The impact of these changes includes a reduction in annual fees paid to Bitfury of up to $2 million. As part of these changes, Hut 8 intends to repay its unsecured debt obligation to Bitfury of US$4.75 million and refinance it with a US$5 million bitcoin-collateralized credit facility with Genesis Global Capital, LLC. The refinancing will be completed at a lower interest rate, saving Hut 8 an additional US$102,125 annually.
"The amendment of these contracts will allow Hut 8 to operate more independently as the company continues to mature. Once finalized, Hut 8 will have reduced its operating costs by over $2 million annually. Bitfury remains the largest Hut 8 shareholder and an important strategic partner," said Andrew Kiguel.
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, one of the world's leading full-service hardware and software blockchain technology companies. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 94 BlockBox AC data centers with current operating capacity of 107 MW and 952 PH/s.
Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company's common shares are listed under the symbol "HUT" on the TSX and as "HUTMF" on the OTCQX Exchange.
Key investment highlights and FAQ's: https://www.hut8mining.com/investors.
Hut 8 Corporate Contact:
Chief Executive Officer
Tel: (647) 256-1992
Chief Financial Officer
Tel: (647) 256-1992
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as "plans", "targets", "expects" or "does not expect", "is expected", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the "Risk Factors" section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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