Hut 8 Mining Corp.

Dual-track strategic layout Independent mining entity: In March 2025, Hut 8 will spin off its ASIC miners with a hash rate of 10 EH/s and jointly establish American Bitcoin with the Trump family, focusing on Bitcoin mining and strategic reserves. This subsidiary plans to achieve a hash rate target of 50 EH/s through a four-phase expansion, becoming one of the largest mining companies in the world. Infrastructure service provider: Hut 8 has transformed itself into a digital infrastructure platform, providing exclusive hosting, power supply, and management services for American Bitcoin. As of July 2025, it has managed 1,020 MW of energy capacity and is advancing a 10.8 GW power acquisition plan, while also developing a 430 MW AI data center project. Technical collaboration: Collaborated with Bitmain to develop the liquid-cooled mining machine U3S21EXPH, deployed at the Vega data center in Texas (205 MW), with a single machine computing power of 860 TH/s and an energy efficiency ratio of 13 J/TH, expected annual hosting revenue of 110-120 million USD. Extension of computing power services High-Performance Computing (HPC): Utilizing idle computing power for AI training and big data processing, in Q2 2025, this business generated revenue of 21.3 million USD, accounting for a total revenue of 60.5%, with clients including research institutions and enterprises. Energy Management: By using a mix of natural gas (70%) and wind energy (30%) for power supply, the cost of mining a single Bitcoin has been reduced to $26,232, which is 18% lower than the industry average.

Infrastructure revenue ( 60.5% ) Custody service fee: All American Bitcoin mining machines are hosted at the Hut 8 data center, with a fixed fee charged based on power consumption, contributing 12.8 million dollars in Q2 2025. Management service fee: For American Bitcoin, providing operation, financial, and compliance services, charging 5% of the computing power income as a management fee, with Q2 revenue of 8.5 million dollars. Bitcoin-related returns ( 39.5% ) Mining Revenue: Hut 8 retains a small number of mining machines to mine Bitcoin, producing 279 coins in Q2 2025. Based on an average price of $62,668, the revenue is $17.48 million. Reserve Appreciation: Through the American Bitcoin holding strategy, the combined reserve amount reached 10,264 BTC by March 2025. Due to price fluctuations, fair value adjustments in Q2 resulted in a net loss of 71.8 million dollars. Capital operation income Equity appreciation: Holding 80% equity in American Bitcoin, which plans to expand through IPO financing, with an expected market value of 5 billion dollars. Hut 8's shareholding is valued at approximately 4 billion dollars. Power asset securitization: Valuing a 10.8 GW power pipeline at $3.6 billion, planning to issue green bonds for financing the construction of AI data centers.

Risk Isolation and Profit Balance Infrastructure revenue (60.5%) generates stable cash flow, reducing the impact of Bitcoin price fluctuations on profits. In Q2 2025, despite a net loss of $71.9 million, revenue grew 72% year-on-year, demonstrating the effectiveness of the transformation. By operating independently through American Bitcoin, Hut 8 separates high-risk mining operations from low-risk infrastructure services, maximizing capital efficiency. Building a Technical Moat The liquid-cooled mining machines and AI computing power scheduling technology create a barrier, with Vega Data Center's energy efficiency ratio (13 J/TH) being 30% lower than the industry average, attracting institutional clients' hosting demands. The exclusive cooperation agreement with Bitmain ensures priority supply of mining machines, with an additional deployment of 15 EH/s computing power in Q3 2025, consolidating market position. Capturing Policy Dividends Utilizing the subsidies from the U.S. government for energy-intensive industries, obtaining tax benefits and electricity pricing rights, saving operating costs of $4.2 million in Q2 2025. The "Digital Infrastructure Act" promoted by the Trump administration provides policy support for the expansion of its power pipeline, with expected related revenue reaching $360 million by 2026.

Direct impact Bitcoin ( BTC ): Supply side: American Bitcoin's 50 EH/s computing power accounts for 2.5% of the global network, consuming approximately 4.8 million kilowatt-hours of electricity daily, indirectly driving up mining difficulty and block reward costs. Demand side: Hut 8's hosting services attract other mining companies to settle in, with an additional hosting computing power of 3.2 EH/s in Q2 2025, increasing the concentration of Bitcoin network computing power. Indirect influence Stablecoins (USDC/USDT): As the main medium for electricity procurement and equipment payments, in Q2 2025, it holds a stablecoin reserve of 8 million dollars to hedge against the price volatility risk of Bitcoin. Other PoW coins: If the Vega data center expands to other algorithms, it may affect the mining ecosystem of coins such as ETC and RVN, but no related plans have been announced yet.