Hut 8 Mining Corp. (NASDAQ:HUT) Q2 2023 Results Conference Call August 14, 2023 10:00 AM ET

Company Participants

Jaime Leverton - CEO

Shenif Visram - CFO

Conference Call Participants

Mike Colonnese - H.C. Wainwright

Bill Papanastasiou - Stifel

Joseph Vafi - Canaccord

Operator

Good morning, ladies and gentlemen. Welcome to Hut 8’s Second Quarter 2023 Financial Results Analyst and Investor Call. In addition to the media release issued earlier today, you can find Hut 8’s financial statements and MD&A on the Company’s website at www.hut8.io under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.gov.

Unless noted otherwise, all amounts referred to during this call are denominated in Canadian dollars.

Any comments made during this call may include forward-looking statements within the meaning of applicable securities legislation regarding the future performance of Hut 8 Mining Corp. and its subsidiaries. The statements made reflect current expectations and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, the factors discussed in the Hut 8’s Annual Information Form for the year ended December 31, 2022, and the Company’s other continuous disclosure documents. Except as required by applicable law, Hut 8 undertakes no obligation to publicly update or review any forward-looking statements.

During the call, management may also make reference to certain non-IFRS measures that are not separately defined under IFRS, such as adjusted EBITDA and mining profit. Management believes that non-IFRS financial information taken in conjunction with IFRS financial measures provide useful information for both management and investors. Reconciliations between IFRS and non-IFRS results are presented in the tables accompanying our press release, which can be viewed on our website.

I would now like to turn the call over to Hut 8 CEO, Jaime Leverton. Please go ahead.

Jaime Leverton

Thank you, Michelle. Good morning, everyone. Welcome to today’s call where we will discuss Hut 8’s results for the second quarter of 2023.

The second quarter was a challenging one on the mining side. While our Medicine Hat site operations continued relatively smoothly throughout the period, we continued to work to remediate the issues at Drumheller. As mentioned in last week’s production update, we continue to see issues at the site, primarily stemming from high energy input levels that have been causing miners to fail. As a result, operations are currently at approximately 20% of our installed hash rate in Drumheller. The team has implemented new custom firmware across all miner models designed to lower the power supply’s maximum output voltage, ensuring our equipment operates within safe limits, increased repair staff, added an additional repair center shift and procured new hardware to expedite repairs and accelerate the speed at which we bring miners back online.