Hut 8 to sell 310 MW power portfolio to TransAlta

Executive Summary

• Hut 8 Corp. entered into a definitive share purchase agreement to sell its 310‑MW portfolio of four natural‑gas power plants in Ontario to TransAlta Corp.
• The assets have secured five‑year capacity contracts through the IESO MT2 auction, providing investment‑grade, long‑term revenue streams.
• Proceeds from the sale will be redeployed into Hut 8’s “multigigawatt” digital infrastructure pipeline, aligning capital allocation with its core growth strategy.

Key Details

• Transaction Structure: Share purchase agreement; TransAlta to acquire 100% of Far North Power Corp., the entity that owns and operates the four plants.
• Asset Description: 310 MW total capacity across four natural‑gas‑fired power plants located in Ontario, Canada.
• Contractual Backstop: All four sites have been awarded five‑year capacity contracts via the Ontario IESO Medium‑Term 2 (MT2) auction, converting short‑term seasonal arrangements into long‑term, investment‑grade revenue commitments.
• Strategic Rationale – Hut 8: The portfolio was stabilized and optimized after acquisition out of bankruptcy; sale allows Hut 8 to “redeploy capital” toward high‑return digital infrastructure projects (bitcoin mining, HPC data centres, etc.).
• Strategic Rationale – TransAlta: Acquisition expands TransAlta’s Ontario footprint with contracted, dispatchable generation assets that support grid reliability and offer future recontracting upside.
• Financial Adviser: CIBC Capital Markets acted as financial adviser to Hut 8.
• Legal Counsel: Bennett Jones LLP served as legal counsel to Hut 8.
• Management Comments:
• Asher Genoot (CEO, Hut 8): Highlighted disciplined optimization and the creation of conditions to “crystallize the value” for shareholders.
• Sean Glennan (CFO, Hut 8): Stated that while the assets are attractive, they are not core to the current strategy; proceeds will fund higher‑return opportunities.
• John Kousinioris (President & CEO, TransAlta): Emphasized the acquisition’s fit with TransAlta’s growth in Ontario and its role in supporting electrification and grid reliability.

Notable Quotes

• “Our power‑native team executed a disciplined program to strengthen the four natural‑gas power plants… enabling the award of investment‑grade, long‑term capacity contracts.” – Asher Genoot, CEO, 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.” – Sean Glennan, CFO, Hut 8
• “The transaction adds to our reliable and increasingly diversified portfolio… we see long‑term value in these assets.” – John Kousinioris, President & CEO, TransAlta