Hut 8 to sell 310 MW power portfolio to TransAlta

Executive Summary

• Hut 8 Corp. entered a definitive share purchase agreement to sell its 310‑MW natural‑gas power portfolio (four Ontario plants) to TransAlta Corp.
• The assets have secured five‑year capacity contracts via the Ontario IESO MT2 auction, providing investment‑grade, long‑term revenue streams.
• Proceeds will be redeployed to Hut 8’s core strategy of large‑scale digital infrastructure development, enhancing shareholder value.

Key Details

• Transaction Structure: Share purchase agreement; TransAlta acquires 100% of the portfolio owned by Far North Power Corp., a joint entity of Hut 8 and Macquarie Equipment Finance Ltd.
• Asset Description: Four natural‑gas‑fired power plants in Ontario, total capacity 310 MW, previously acquired out of bankruptcy and stabilized by Hut 8.
• Contractual Backing: All four sites have five‑year capacity contracts awarded through the IESO Medium‑Term 2 (MT2) auction, converting short‑term seasonal arrangements to long‑term, investment‑grade commitments.
• Strategic Rationale – Hut 8: Assets are “not core” to current capital plan; sale frees capital for multigigawatt digital infrastructure pipeline across North America.
• Strategic Rationale – TransAlta: Adds contracted, dispatchable generation capacity in Ontario, supporting grid reliability and providing recontracting upside post‑MT2 term.
• Financial Adviser (Seller): CIBC Capital Markets.
• Legal Counsel (Seller): Bennett Jones LLP.
• Impact on Hut 8: Expected cash inflow to fund high‑return digital infrastructure projects; reinforces focus on power‑first, compute‑first development model.

Notable Quotes

• Asher Genoot, CEO, Hut 8: “Our power‑native team executed a disciplined program… enabling the award of investment‑grade, long‑term capacity contracts… we created the appropriate conditions to crystallize the value of the portfolio for our shareholders.”
• Sean Glennan, CFO, Hut 8: “Redeploying capital from the portfolio enables us to advance those opportunities while demonstrating our ability to invest in, optimize and ultimately monetize complex power assets.”
• John Kousinioris, President & CEO, TransAlta: “The acquisition increases our position in Ontario… assets are attractively positioned for recontracting opportunities…and we see long‑term value in these assets.”