# EDGAR Filing Document

**Accession Number:** 0001964789
**File Stem:** 0000000000-23-002900
**Filing Date:** 2023-3
**Character Count:** 92122
**Document Hash:** ea6060501d7905ef2d71839285132dc6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-002900.hdr.sgml**: 20231212

**ACCESSION NUMBER**: 0000000000-23-002900

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230323

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Hut 8 Corp.
- **CENTRAL INDEX KEY:** 0001964789
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **IRS NUMBER:** 922056803
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 1101 BRICKELL AVENUE, SUITE 1500
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33131
- **BUSINESS PHONE:** 305-224-6427

**MAIL ADDRESS:**
- **STREET 1:** 1101 BRICKELL AVENUE, SUITE 1500
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33131
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001104659-23-019807

## Text-Extract

```

United States securities and exchange commission logo

                             March 23, 2023

       Asher Genoot
       President
       Hut 8 Corp.
       c/o U.S. Data Mining Corp.
       1221 Brickell Avenue, Suite 900
       Miami, Florida 33131

                                                        Re: Hut 8 Corp.
                                                            Registration
Statement on Form S-4
                                                            Filed February 13,
2023
                                                            File No. 333-269738

       Dear Asher Genoot:

              We have reviewed your registration statement and have the
following comments. In
       some of our comments, we may ask you to provide us with information so
we may better
       understand your disclosure.

              Please respond to this letter by amending your registration
statement and providing the
       requested information. If you do not believe our comments apply to your
facts and
       circumstances or do not believe an amendment is appropriate, please tell
us why in your
       response.

              After reviewing any amendment to your registration statement and
the information you
       provide in response to these comments, we may have additional comments.

       Registration Statement on Form S-4

       General

   1.                                                   Please provide
disclosure of any significant crypto asset market developments material to
                                                        understanding or
assessing Hut 8's and USBTC's respective business, financial condition
                                                        and results of
operations, or share price since either company's last reporting period,
                                                        including any material
impact from the price volatility of crypto assets.
       Questions and Answers about the Business Combination
       What are the U.S. federal income tax consequences of the Merger..., page
5

   2.                                                   You disclose that the
parties intend that the Hut 8 Share Exchange occurring pursuant to
                                                        the Arrangement and the
Merger, together, be treated as an exchange by Hut 8
 Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 2
         shareholders and USBTC stockholders, respectively, that qualifies
under Section 351(a) of
         the Internal Revenue Code. Since it appears that the tax consequences
to the transaction
         are material to shareholders, please file a tax opinion as an exhibit
to the registration
         statement. Refer to Item 601(b)(8) of Regulation S-K. For guidance,
please refer to Staff
         Legal Bulletin No. 19, Section III.A.2.
Selected Unaudited Financial Data as of January 31, 2023, page 23

3.       The combined financial information does not appear to comply with the
requirements for
         the presentation of pro forma financial information in Article 11 of
Regulation S-X.
         Please either remove this presentation, or explain to us the purpose
of the presentation and
         the basis for its presentation. Refer to Item 11-02(a)(12) of
Regulation S-X.
Market Price of and Dividends on Common Equity
Comparative Per Share Market Price, page 24

4.       Please disclose the market value of Hut 8 on an equivalent per share
basis. Refer to Item
         3(g) of Form S-4.
Risk Factors, page 27

5.       To the extent material, please discuss any reputational harm that
either Hut 8 or USBTC
         may face in light of recent disruptions in the crypto asset markets,
including bankruptcies,
         crypto asset price volatility, and legal proceedings involving
prominent crypto platforms.
         For example, discuss how market conditions have affected how either
company's business
         is perceived by customers, counterparties, and regulators, and whether
there is a material
         impact on its operations or financial condition.
6.       Please describe any material risks to either Hut 8's or USBTC's
business from the
         possibility of regulatory developments related to crypto assets and
crypto asset markets.
          Identify material pending crypto legislation or regulation and
describe any material
         effects it may have on either company's business, financial condition,
and results of
         operations.
7.       Please describe any material risks that either Hut 8 or USBTC faces
related to the
         assertion of jurisdiction by U.S. and foreign regulators and other
government entities over
         crypto assets and crypto asset markets.
8.     To the extent material, please describe any gaps that either Hut 8's or
USBTC's respective
FirstName LastNameAsher Genoot
       board or management have identified with respect to risk management
processes and
Comapany   NameHut
       policies in light8 of
                          Corp.
                             current crypto asset market conditions as well as
any changes they have
March made   to address
       23, 2023  Page 2 those gaps.
FirstName LastName
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March3 23, 2023 Page 3
Page
FirstName LastName
9.       Please describe any material financing, liquidity, or other risks that
either Hut 8 or
         USBTC faces related to the impact that the current crypto asset market
disruption has had,
         directly or indirectly, on:
             The value of the crypto assets or miners that either company uses
as collateral; or
             The value of either company's crypto assets, miners or mining real
estate used by
             others as collateral, as applicable in each case.
10.      To the extent material to either Hut 8 or USBTC, please describe any
of the following
         risks from disruptions in the crypto asset markets:
             Risk from depreciation in either company's stock price.
             Risk of loss of customer demand for either company's products and
services.
             Financing risk, including equity and debt financing.
             Risk of increased losses or impairments in either company's
investments or other
              assets.
             Risks of legal proceedings and government investigations, pending
or known to be
              threatened, in the United States or in other jurisdictions
against either company or its
              affiliates.
             Risks from price declines or price volatility of crypto assets.
             Risks of increased regulation of the crypto asset industry.
Risks Related to USBTC's Business, page 38

11.      Please expand on your statement on page 46 that    an adverse outcome
of the Niagara Falls
         Litigation may affect U.S. Data Technologies Group Ltd.   s permits
and operations with
         respect to its Niagara Falls data site.    Describe the potential
practical implications of an
         adverse decision in the Niagara Falls Litigation, including whether
the site may be
         required to be closed and its impact on USBTC   s business performance
and results of
         operations.
USBTC   s Power Generation-Related Risks
Maintenance, expansion and refurbishment of power generation facilities...,
page 58

12.      We note your references to "NYISO" and "ERCOT" on page 58 of your
filing. Please
         ensure that all acronyms and terms are defined when first used. Refer
to Rule 421(b) of
         the Securities Act of 1933, as amended.
USBTC's future success will depend upon the value of Bitcoin, page 67

13.      Please tell us why you disclose that USBTC will be marking Bitcoin to
fair value each
         quarter since this policy does not appear consistent with that
disclosed on page F-31.
The Business Combination, page 75

14.      We note that Hut 8 and USBTC provided certain financial forecasts and
projections to the
         financial advisors and that the financial advisors relied upon these
financial projections in
         preparing their fairness opinions. Please disclose in this section the
financial projections
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March4 23, 2023 Page 4
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FirstName LastName
         and forecasts provided to the financial advisors or explain why such
information is not
         material to security holders.
Fairness Opinion of Stifel GMP, page 82

15.      Please revise to quantify the fees Hut 8 paid to Stifel GMP when it
rendered its fairness
         opinion. Also please quantify the fees payable to Stifel GMP
contingent on completion of
         the Business Combination or an alternative transaction. Refer to Item
4(b) of Form S-4
         and Item 1015(b)(4) of Regulation M-A.
Accounting Treatment of the Business Combination, page 95

16.      Please tell us about the pertinent facts and circumstances you
considered in determining
         the acquirer in the business combination. Refer to ASC 805-10,
including ASC 805-10-
         55-12. Further, you disclose that the preliminary assessment of the
accounting acquirer is
         subject to evaluation and may be impacted by matters such as New Hut
board rights
         related to tie-break votes and the relative fair values of USBTC and
Hut 8 at closing.
         Include a discussion of these matters in your response.
The Business Combination Agreement
Conditions to Completion of the Business Combination, page 114

17.      We note your disclosure that certain conditions to the consummation of
the business
         combination may be waived by mutual consent of the Parties. Please
specify which, if
         any, conditions may not be waived by mutual consent of the Parties.
Information About Hut 8, page 125

18.      To the extent material, please discuss how the bankruptcies of
companies in crypto asset-
         related businesses and the downstream effects of those bankruptcies
have impacted or
         may impact Hut 8's business, financial condition, customers, and
counterparties, either
         directly or indirectly. Clarify whether Hut 8 has material assets that
may not be recovered
         due to the bankruptcies or may otherwise be lost or misappropriated.
19.      To the extent material to an understanding of Hut 8's business, please
describe any direct
         or indirect exposures to other counterparties, customers, custodians,
or other participants
         in crypto asset markets known to:
             Have filed for bankruptcy, been decreed insolvent or bankrupt,
made any assignment
              for the benefit of creditors, or have had a receiver appointed
for them.
             Have experienced excessive redemptions or suspended redemptions or
withdrawals
              of crypto assets.
             Have the crypto assets of their customers unaccounted for.
             Have experienced material corporate compliance failures.
20.      To the extent material, please explain whether Hut 8's crypto assets
serve as collateral for
         any loan, margin, rehypothecation, or other similar activities to
which Hut 8 or its
         affiliates are a party. If so, identify and quantify the crypto assets
used in these financing
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March5 23, 2023 Page 5
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FirstName LastName
         arrangements and disclose the nature of Hut 8's relationship for loans
with parties other
         than third-parties. State whether there are any encumbrances on the
collateral. Discuss
         whether the current crypto asset market disruption has affected the
value of the underlying
         collateral. Please include similar disclosure for Hut 8's miners used
as collateral.
21.      Please revise to address the following:
             Discuss Hut 8's intentions to mine, invest in or transact in
crypto assets other than
             Bitcoin and update this disclosure in future filings as
appropriate;
             Describe Hut 8's process, if any, for analyzing whether a
particular crypto asset that it
             intends to mine, invest in, or transact in is a "security" within
the meaning of Section
             2(a)(1) of the Securities Act, including whether and how the
recent completion of
             Ethereum's transition to Proof-of-Stake consensus has impacted its
analysis. Disclose
             that this is a risk-based judgment and does not constitute a legal
determination
             binding on regulators or the courts; and
             Expand the risk factors section to describe the specific potential
consequences to Hut
             8 and to investors if it is subsequently determined that Hut 8 has
participated in the
             unregistered issuance or distribution of securities, including the
specific risks inherent
             in its business model that may necessitate corrective measures as
a result of judicial
             or regulatory actions.
22.      Refer to your disclosure in your Annual Information Form, which has
been filed as
         Exhibit 99.1 to Hut 8's Annual Report on Form 40-F for the year ended
December 31,
         2021 and revise to address the following points:
             On page 11, you disclose that Hut 8 provides cloud services and
data centre
             colocation services to its customers. Please revise to briefly
discuss Hut 8's fee
             structure for providing such services to its customers and include
illustrative
             examples, as appropriate.
             On page 12, you disclose that Hut 8 has entered into agreements
with each of ATCO
             Electric Ltd., City of Medicine Hat and Validus for the provision
of power or use of
             electricity. Please revise to describe in greater detail the
material terms and
             conditions of these agreements, including, without limitation, the
material obligations
             of the parties, the duration of the agreement and the material
termination provisions.
             On page 13, you state that the primary seasonality that Hut 8
experiences is related to
             potential changes in electricity prices and that electricity is
your largest expense.
             Please revise to provide a discussion of your average cost of
electricity for the
             periods presented, and whether there are any known trends
regarding the fluctuations
             in the cost of electricity. In addition, consider including a
discussion of the
             differences in the cost of electricity for each of the geographic
regions you operate.
             On page 16, we note the statements in the bottom risk factor that
the Commission's
             views regarding whether a particular crypto asset falls within the
definition of a
                security    under the U.S. federal securities laws have
"evolved over time and it is
             difficult to predict the direction or timing of any continuing
evolution. It is also
             possible that a change in the governing administration or the
appointment of new
             SEC commissioners could substantially impact the views of the SEC
and its staff."
 Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 6
              Please remove these statements as the legal tests are
well-established by U.S.
              Supreme Court case law and the Commission and staff have issued
reports, orders,
              and statements that provide guidance on when a crypto asset may
be a security for
              purposes of the U.S. federal securities laws.
Information About USBTC, page 129

23.      Please revise this section of your filing to address comments 18
through 20 above as they
         apply to your disclosure concerning USBTC.
Business Overview, page 129

24.      Please discuss USBTC's intentions to mine, invest in or transact in
crypto assets other than
         Bitcoin and update this disclosure in future filings as appropriate.
25.      You disclose that USBTC owns a 50% interest in the King Mountain JV
with a "leading
         North American energy company." Please identify your joint venture
partner.
Reactor: Energy Curtailment, page 130

26.      We note your disclosure regarding Reactor,    an advanced, algorithmic
energy curtailment
         platform that USBTC believes will drive significant Bitcoin mining
profitability for
         USBTC.    Please provide further detail regarding Reactor, its
development, its role in
         USBTC   s current operations and any measurable changes in energy
efficiency,
         profitability or any other relevant metrics that may drive USBTC   s
results of operations.
Custody Policy, page 132

27.      Please revise this section to address the following:
             Provide quantified disclosure regarding the respective portions of
USBTC's Bitcoin
             balance held by each of the third-party custodians referenced.
             Disclose the material terms of USBTC's arrangement with each
third-party custodian,
             including, for example, in what manner the relevant custodian is
required to store
             USBTC's crypto assets, whether it is contractually required to
hold USBTC's crypto
             assets in cold storage, what security precautions the custodian is
required to
             undertake, what inspection rights USBTC has, and what type of
insurance, if any, the
             custodian is required to have to protect USBTC from loss.

       Also please apply this comment to the same or similar disclosures of Hut
8 throughout the
       filing, as applicable.
FirstName LastNameAsher Genoot
28.    You disclose that USBTC uses third-party custody solutions to safeguard
its bitcoin and
Comapany
       "doesNameHut    8 Corp.
              not currently hold any bitcoin for third parties." Please
disclose whether USBTC
March has   any current
       23, 2023   Page 6plans or intentions to hold any crypto assets for third
parties in the future.
FirstName LastName
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March7 23, 2023 Page 7
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FirstName LastName
King Mountain JV, page 133

29.      Please disclose the material terms of the King Mountain JV Senior
Note, including
         repayment terms, principal events of default, and any security
interests that the lenders
         may hold. Please clarify the nature of USBTC's assumption of the note,
including whether
         the JV partner has also assumed the note.
Anchorage, page 134

30.      We note your disclosure that the Refinanced Loan Agreement with
Anchorage Lending
         CA, LLC is    repaid through profits generated from those certain
USBTC miners
         underlying the security interest, as further specified in the
Refinanced Loan
         Agreement   USBTC is not required to make a minimum monthly payment.
 Please
         provide further disclosure regarding USBTC   s repayment obligations,
including how
         profit from the relevant miners is determined, what would occur in the
event that the
         relevant miners were rendered inoperative or generated lower profit
than expected, what
         would constitute a payment default under the agreement and other
relevant terms.
Cost of Electricity, page 145

31.      On page 146, if material, please disclose the amount of demand
response payments netted
         within your costs of electricity for each period. If not material,
separately tell us the
         amounts netted for each period.
Management's Discussion and Analysis of Financial Condition and Results of
Operations of
USBTC
Trends and Key Factors Affecting USBTC's Performance
Halving, page 145

32.      Please disclose the steps you are taking to address and/or mitigate
the impacts of halving,
         as well as the potential impact of decreased rewards on revenues and
economics of your
         business model.
Key Operating and Financial Indicators, page 146

33.      We note the trends and key factors affecting your performance
discussed on page 145.
         Please include in the table on page 146 quantification of your key
indicators for the
         network hash rate and difficulty, and the number of miners for each
period presented to
         provide context and support trends in your key operating and financial
indicators. If
         material, also disclose the number of miners that were non-operational
in those periods.
34.      Please balance your tabular disclosure and following narrative
disclosures to include, with
         equal or greater prominence, the most comparable GAAP measure to
Adjusted EBITDA.
         See Item 10(e)(1)(i)(A) of Regulation S-K and Question 102.10(a) of
the Compliance and
         Disclosure Interpretations on Non-GAAP Financial Measures.
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March8 23, 2023 Page 8
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FirstName LastName
35.      Please revise to include a breakeven analysis for USBTC   s mining
operations or any other
         crypto assets that it earns or mines that compares the cost to earn or
mine one crypto asset
         with the value of the crypto asset. Please provide a discussion of how
USBTC expects the
         Business Combination to impact its breakeven analysis in the future.
Also please apply
         this comment to the same or similar disclosures of Hut 8 throughout
the filing, as
         applicable.
Critical Accounting Policies and Significant Estimates, page 148

36.      Please revise your disclosure to provide the qualitative and
quantitative information
         necessary to understand the estimation uncertainty and the impact the
critical accounting
         estimates have had or are reasonably likely to have on your financial
condition or results
         of operations to the extent the information is material and reasonably
available. In your
         revised disclosure discuss why each critical accounting estimate is
subject to uncertainty
         and, to the extent the information is material and reasonably
available, how much each
         estimate and/or assumption has changed over a relevant period, and the
sensitivity of the
         reported amount to the methods, assumptions and estimates underlying
its calculation. See
         Item 303(b)(3) of Regulation S-K and Instruction 3 to Item 303(b).
Digital Asset Mining, page 150

37.      Please expand your disclosure regarding USBTC's arrangements with
mining pool
         operators to address the following:
             Provide more detailed disclosure regarding each mining pool,
including how each
             pool operates, the transaction fees paid and the amount of reward
received from each
             pool.
             Disclose the material terms of any service agreements with such
providers, including
             the term and termination provisions thereof.
             Clarify how USBTC calculates or verifies its proportion of the
contributed computing
             power resulting in the amount of cryptocurrency awarded.

         Also please apply this comment to the same or similar disclosures of
Hut 8 throughout the
         filing, as applicable.
38.      Please briefly discuss whether USBTC's business strategy is to hold
its crypto assets for
         investment or convert them into fiat currency immediately upon receipt
or soon thereafter.
          Discuss the average period between receipt of USBTC's crypto assets
and the subsequent
         conversion into fiat currency and quantify the fees incurred. Please
revise to disclose
         whether USBTC has a specific policy for how it will determine when to
sell crypto assets
         for fiat currency to fund operations or growth and through what
exchange or if USBTC
         intends to hold its mining rewards for investment purposes. To the
extent USBTC has an
         agreement with a third-party exchange for converting crypto assets to
fiat currency, please
         disclose the material terms and file the agreement as an exhibit or
tell us why this is not
         required by Item 601(b)(10) of Regulation S-K. Also please apply this
comment to the
         same or similar disclosures of Hut 8 throughout the filing, as
applicable.
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March9 23, 2023 Page 9
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Common Stock Valuations, page 152

39.      Please provide us your analysis supporting the decline in the fair
value of USBTC
         common stock from $4.34 per share in March 2022 to $0.01 per share in
August 2022. In
         your response also tell us why the exercise price of the options
granted in August 2022
         was reduced from the March 2022 exercise price of $4.34 per share to
only $1.78 per
         share if the fair value of common stock at that time was $0.01 per
share.
Results of Operations, page 153

40.      Please discuss, including quantitatively where possible, all known
trends or uncertainties
         that have had, or that you reasonably expect will have, a material
favorable or unfavorable
         impact on revenue or results of operations. We note by way of example
that USBTC is
         currently subject to the Niagara Falls Litigation (page 46).
The year ended June 30, 2022 compared to the period from December 4, 2020
(inception)
through June 30, 2021, page 156

41.      It appears that the $3.8 million of payments to your officers
disclosed in the last two
         paragraphs on page 162 may be included in the $5.3 million of cash
payments to certain
         employees and advisors included in your one time cost non-GAAP
adjustment. Please
         confirm whether this is true or not. Regardless, tell us how cash
payments to current
         employees do not represent normal cash operating expenses similar to
other cash
         compensation paid to your employees that should not be removed from
non-GAAP
         performance measures under Question 100.01 of the Compliance and
Disclosure
         Interpretations on Non-GAAP Financial Measures.
Unaudited Pro Forma Condensed Combined Statement of Financial Condition, page
194

42.      Please consider revising the title of this section as your pro forma
financial information is
         not limited to a statement of financial condition.
43.      Please revise your introductory disclosure to also discuss the debt
extinguishment
         transaction presented in Note 3 as required by Item 11-02(a)(2) of
Regulation S-X.
44.      Please tell us your consideration for presenting the Note 2
Acquisition Transaction
         Adjustments before the Note 3 Debt Extinguishment adjustments in your
pro forma
         financial statements and including a subtotal column presenting the
proposed business
         combination to differentiate it from the debt extinguishment.
45.      With respect to other transactions or events that have occurred such
as the Niagara Falls
         litigation of USBTC and the shut down of Hut 8   s North Bay facility
and the associated
         relocation of miners, please tell us your consideration for presenting
Management's
         Adjustments under Item 11-02(a)(7) of Regulation S-X. In your response
tell us whether
         the inclusion of pro forma adjustments for these events would enhance
an understanding
         of the pro forma effects of your proposed transaction since we note
these transactions
 Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 10
         are not included or discussed. If so, revise your presentation to
provide Management's
         Adjustments or tell us why they are not warranted. If not, tell us why
they would not
         enhance such an understanding.
Unaudited Pro Forma Combined Statement of Operations, page 196

46.      Please revise pages 196 and 197 to present historical basic and
diluted per share amounts
         and the number of shares used to calculate such per share amounts on
the face of the pro
         forma condensed statement of operations. Refer to Item 11-02(a)(9)(i)
of Regulation S-X.
Note 1. Basis of Presentation, page 198

47.      You disclose that New Hut elected not to present Autonomous Entity
Adjustments. We
         note that under Item 11-02(a)(6) of Regulation S-X, you must include
adjustments that
         depict the registrant as an autonomous entity if the conditions in
Item 11-01(a)(7) are met
         (i.e., the registrant previously was a part of another entity and such
presentation is
         necessary to reflect operations and financial position of the
registrant as an autonomous
         entity). As the presentation of Autonomous Entity Adjustments is not
optional, please
         revise your disclosure to remove the indication that you elected not
to provide them.
Note 2. Business Combination Transaction Adjustments, page 199

48.      In the introduction to the table in pro forma adjustment a) you
disclose that you
         determined the purchase using the share price as of February 10, 2023,
but in the table you
         disclose that the price is as of February 6, 2022. Please revise.
49.      Please disclose in more detail how you determined the adjustment to
depreciation and
         amortization expenses. For example, explain how you changed the method
of depreciation
         and/or useful lives of the assets.
50.      Please tell us how your pro forma statement of financial position
presents current and
         deferred income taxes. In your response explain why there are no
apparent pro forma
         adjustments for income taxes and reference for us the authoritative
literature you rely
         upon to support your position.
Note 3. Adjustment for USBTC debt extinguishment, page 201

51.    Please explain to us why the pro forma footnotes do not include any
impact to your
FirstName LastNameAsher Genoot
       revenues and related costs given that you exchanged miners with the
finance
Comapany   NameHut
       company.   Refer8 to
                         Corp.
                            Item 11-02(a)(11)(i) of Regulation S-X. Please also
disclose the
March number
       23, 2023ofPage
                  miners
                       10 exchanged.
FirstName LastName
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March1123, 2023 Page 11
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Note 4. Adjustments for the effect of reclassifications, foreign exchange and
IFRS / U.S. GAAP
differences for Hut 8, page 201

52.      We note that the tables all state that the amounts are in thousands of
U.S. dollars. It
         appears that only the amounts in the last column of the tables are in
U.S. dollars and the
         other columns are in Canadian dollars. If true, please revise to
clarify.
53.      Please disclose the basis for the conversion from Canadian dollars to
U.S. dollars.
54.      For U.S. GAAP purposes, you classify Hut 8's cryptocurrency in current
assets. Please tell
         us how your classification of cryptocurrencies as current assets is
consistent with the
         definition of current assets in ASC 210-10-20.
55.      We note that you made a U.S. GAAP adjustment to reverse the impact of
applying the
         revaluation model for cryptocurrency under IFRS as the revaluation
model is prohibited
         under U.S. GAAP and any impairment losses recognized cannot be
subsequently reversed.
         With respect to the accounting for impairment under U.S. GAAP please
address the
         following and reference for us the authoritative literature you rely
upon to support your
         accounting:
             Briefly disclose Hut 8's accounting policy for impairment of
cryptocurrency under
              U.S. GAAP.
             Disclose the timing of the assessment. Tell us whether you
considered using the
              lowest intraday amount. Refer to ASC 350-30-35-18B.
             Tell us the market(s) you use to determine the quoted price used
to assess impairment
              for Hut 8's cryptocurrency holdings.
             Tell us how you identified the principal markets. Explain to us
the process you
              undertook to evaluate the various exchanges on which Hut 8 trades
and how this
              process and ultimate conclusion conforms to the guidance in ASC
Topic 820 and
              ASC 820-10-35-5A.
56.      We note that you reflect no U.S. GAAP adjustments to the Hut 8
financial statements for
         the recognition of revenue. Please provide us with a thorough
accounting analysis,
         including what literature applies to these arrangements (e.g., ASC
842, ASC 606, ASC
         460, etc.). To the extent ASC 606 is the applicable guidance, please
ensure your analysis
         describes, in appropriate detail, your application of the five steps
in ASC 606 and cites the
         authoritative literature supporting that application. Also ensure your
analysis highlights
         significant accounting judgments you made and the alternatives, if
any, that you
         considered and rejected. In your response, specifically address the
following for Hut
         8's self-mining:
             Provide us a representative sample of the contracts with Hut 8's
customers for self-
              mining.
             Substantiate how the provision of computing power to the mining
pool is Hut 8's sole
              performance obligation.
             Tell us the types of cryptocurrencies mined by Hut 8 (for example,
bitcoin, ethereum,
              etc.).
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March1223, 2023 Page 12
Page
FirstName LastName
                Tell us whether there are any penalties for contract
termination by either party. Tell
              us what happens if Hut 8 cancels midterm. Also explain whether
Hut 8 can withdraw
              computing power midterm and reinstitute it later that same day.
                Tell us how you determine contract inception.
                Tell us the payment terms for cryptocurrencies earned from the
mining pool operator,
              including identifying the form of consideration (including the
type of
              cryptocurrency), how the amount of consideration is determined,
and when Hut 8
              is paid.
                Explain the timing of when Hut 8 measures the value of any
non-cash consideration
              under ASC 606-10-32-21.
                Explain the application of any variable consideration
constraints.
                Tell us the market used to value the non-cash consideration and
how it was
              determined. Explain to us whether this is your principal market.
57.      Please tell us why there is no income tax impact of GAAP adjustments
on the historical
         statement of operations for Hut 8 for the three months ended September
30, 2022 and no
         apparent US GAAP income tax adjustments on the historical statement of
financial
         condition at September 30, 2022.
58.      Regarding adjustment 4(c), please tell us why there is no warrant
liability under US
         GAAP at either the Hut 8 level or at the combined pro forma level. In
your response
         specifically clarify whether the warrants are exercisable in Canadian
dollars or U.S.
         dollars and the impact this has on your classification at either the
Hut 8 or combined pro
         forma level.
Financial Statements of USBTC
Note 3. Basis of Presentation, Summary of Significant Accounting Policies and
Recent
Accounting Pronouncements
Revenue Recognition
Cryptocurrency mining, page F-9

59.      Please address the following related to your cryptocurrency mining
revenue recognition.
         In your response, where appropriate, reference for us the
authoritative literature you rely
         upon to support your accounting:
             Provide us with the contracts you have with each of your mining
pool operators.
             Tell us specifically how you determine contract inception for each
mining pool
             contract.
             Tell us the payment terms from each mining pool operator. Explain
to us the method
             you use to estimate variable consideration in your arrangements
and how you apply
             the variable consideration constraint in ASC 606-10-32-11 through
32-13. Also
             describe for us the agreed-upon calculation that measures the
bitcoin that could have
             been mined with your contributed hashrate.
             In your disclosure, clarify whether just the transaction fee or
all of the consideration
             received for your mining pool activities is variable and whether
it is constrained.
 Asher Genoot
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Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March1323, 2023 Page 13
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FirstName LastName
                You disclose that you measure consideration received at fair
value by using the
              quoted price of the related cryptocurrency at contract inception
and you also disclose
              that you value the non-cash consideration at fair value when
notified of the earnings.
              Please reconcile and revise as necessary and tell us how you
considered ASC 606-10-
              32-21 which requires noncash consideration to be measured at
contract inception.
                Tell us why it is appropriate to deduct operating fees to the
mining pool operator
              from revenue. Clarify whether the single amount (i.e., the net
fees received)
              represents the transaction price paid to you in satisfaction of
your performance
              obligation to the pool operator and if the amounts retained by
the pool operator relate
              to the activities it must undertake to fulfill its contract with
you.
                Tell us your accounting for the receivables denominated in
cryptocurrencies.
60.      You disclose that your enforceable right to compensation only begins
when you provide
         computing power to the mining pool operator, and exists in any period
that you provide
         computing power (hourly or daily period depending on the mining pool
operator). Please
         address how this disclosure reconciles with your determination of the
timing of contract
         inception. In circumstances when you are not performing at the
beginning of each hour /
         day but commence performance at some point within the hour / day,
please clarify for us
         when contract inception occurs. Refer, for example, to ASC
606-10-25-4. Similarly, if you
         start and stop performing more than one time within an hour / day,
tell us what constitutes
         contract inception and how many contracts you have during that hour.
Further, if you
         provide continuous performance across more than one hour / day, tell
us what constitutes
         contract inception and contract duration and the reasons why. Please
cite the relevant ASC
         606 guidance that supports your determination.
Hosting services, page F-10

61.      Please tell us the material rights and obligations of the parties to
your hosting transactions.
         Provide us with a thorough accounting analysis, including what
literature applies to these
         arrangements (e.g., ASC 842, ASC 606, ASC 460, etc.). To the extent
ASC 606 is the
         applicable guidance, please ensure your analysis describes, in
appropriate detail, your
         application of the five steps in ASC 606 and cites the authoritative
literature supporting
         that application. Also ensure your analysis highlights significant
accounting judgments
         you made and the alternatives, if any, that you considered and
rejected.
Mining equipment sales, page F-11

62.      Please tell us the material rights and obligations of the parties to
your mining equipment
         transactions. Provide us with a thorough accounting analysis,
including what literature
         applies to these arrangements (e.g., ASC 842, ASC 606, ASC 460, etc.).
To the extent
         ASC 606 is the applicable guidance, please ensure your analysis
describes, in appropriate
         detail, your application of the five steps in ASC 606 and cites the
authoritative literature
         supporting that application. Also ensure your analysis highlights
significant accounting
         judgments you made and the alternatives, if any, that you considered
and rejected.
 Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 14
63.      Please tell us why you do not have mining equipment inventory on your
balance sheet.
         Tell us the nature of the mining equipment you sell and how and when
you obtain the
         equipment for sale. Tell us how a customer takes possession or control
of the equipment
         and describe any obligation you have to dispose of the mining
equipment. Also tell us
         whether your mining equipment sales include any other performance
obligations, such as
         hosting services.
Note 15. Subsequent Events
Acquisition, page F-19

64.      You disclose that on December 6, 2022, you acquired a 50% membership
interest in a
         joint venture. Please tell us about your analysis in determining
whether you are required to
         provide audited financial statements and pro forma financial
information for this
         acquisition. Refer to Rule 3-05 and Article 11 of Regulation S-X.
Strategic Operator Agreements, page F-19

65.      Please address the following related to your strategic operator
agreements. In your
         response, where appropriate, reference for us the authoritative
literature you rely upon to
         support your accounting:
             Tell us the significant terms of your strategic operator
agreements, including payment
             terms.
             Tell us your revenue recognition accounting policy for the
strategic operator
             agreements.
             Tell us how you measure progress toward satisfaction of the
performance obligation.
             Tell us how you determine the transaction price, including
estimating variable
             consideration and assessing whether an estimate of variable
consideration is
             constrained.
Consolidated Statements of Operations, page F-24

66.      Please state separately the amount of costs of revenues for tangible
goods sold and
         services. Refer to Item 5-03(b)(2) of Regulation S-X.
Consolidated Statements of Cash Flows, page F-26

67.    Please tell us why it is appropriate to classify the proceeds from the
sale of
       cryptocurrencies as an operating activity and reference for us the
authoritative literature
       you rely upon to support your accounting. In your response, tell us how
long you hold
FirstName LastNameAsher Genoot
       cryptocurrencies before selling them for cash. Provide us the general
time frame you hold
Comapany
       theseNameHut    8 Corp. including the average time you hold them as well
as the shortest
              cryptocurrencies
March and   longest
       23, 2023     time
                 Page  14periods you have held cryptocurrencies before sale.
FirstName LastName
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March1523, 2023 Page 15
Page
FirstName LastName
Note 3. Basis of Presentation, Summary of Significant Accounting Policies and
Recent
Accounting Pronouncements
Cryptocurrency, net, page F-31

68.      You classify your cryptocurrency (bitcoin) in current assets. Please
tell us how your
         classification of cryptocurrencies as current assets is consistent
with the definition of
         current assets in ASC 210-10-20.
69.      You disclose that you perform a quantitative impairment test daily,
determining the fair
         value of your cryptocurrency by using the quoted price as determined
by your principal
         market. Please address the following and reference for us the
authoritative literature you
         rely upon to support your accounting:
             Tell us the market(s) you use to determine the quoted price used
to assess impairment
              for your cryptocurrency holdings.
             Tell us how you identify the principal market. Explain to us the
process you
              undertook to evaluate the various exchanges on which you trade
and how this process
              and ultimate conclusion conforms to the guidance in ASC Topic 820
in general and
              specifically in ASC 820-10-35-5A.
             Disclose the timing of the quoted price used in your assessment.
Tell us whether you
              considered using the lowest intraday amount. Refer to ASC
350-30-35-18B.
             Explain how you apply the qualitative assessment given the
existence of a quoted
              price on apparently active markets.
Stock-based compensation, page F-34

70.      Please revise your policy disclosure to clarify how/when you record
compensation for
         awards with market conditions versus those with performance
conditions.
Note 5. Cryptocurrency, page F-36

71.      Please revise your rollforward of cryptocurrencies to remove the
proceeds from sale and
         realized gains/losses on crypto currencies and replace them with the
carrying value of the
         cryptocurrencies sold. Provide sufficient supplementary disclosure
below the
         reconciliation to relate the carrying value of cryptocurrencies sold
to the realized
         gains/losses on cryptocurrencies sold on your statements of
operations. In this regard, we
         note that the sale proceeds themselves does not impact the
cryptocurrencies account
         balance on your general ledger. Furthermore, tell us why the "proceeds
from the sale of
         cryptocurrency in accounts receivable" is a line item in your
rollforward if it does not
         represent carrying value and/or was not included in the beginning
balance of
         cryptocurrencies.
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March1623, 2023 Page 16
Page
FirstName LastName
Exhibits

72.      Please revise to disclose the material terms of the lease agreement
between U.S. Data
         Technologies Group Ltd. and 2747 Buffalo Avenue, LLC filed as Exhibit
10.12 to the
         registration statement.
73.      The fairness opinion provided by Stifel GMP filed as Exhibit 99.1
indicates that it is
         provided to the Board of Directors of Hut 8 for "its exclusive use
only...and may not be
         used or relied upon by any other person...without [Stifel GMP's] prior
written consent."
         Please also refer to similar language contained in the fairness
opinion provided by Kroll,
         LLC filed as Exhibit 99.2. Please remove this limitation on reliance
as it is inconsistent
         with the disclosure relating to the fairness opinions.
74.      Please tell us what consideration you have given to filing the
following documents as
         exhibits to the registration statement:
             any agreements that memorialize USBTC's joint venture arrangements
in connection
             with its 50% ownership interest in the King Mountain JV, as
discussed on page 133;
             and
             the property management agreements that USBTC has entered into
with the owners
             of Charlie, Delta, and Echo, respectively, as discussed on pages
44 and 133.

         Please refer to Item 601(b)(10) of Regulation S-K.
75.      Please ensure each exhibit is in the proper text-searchable format.
See Rules 301 and 304
         of Regulation S-T. For example, we note Exhibits 10.6 through 10.8 and
10.12 are not in
         text-searchable format.
 Asher Genoot
FirstName
Hut 8 Corp.LastNameAsher Genoot
Comapany
March      NameHut 8 Corp.
       23, 2023
March1723, 2023 Page 17
Page
FirstName LastName
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       Refer to Rules 460 and 461 regarding requests for acceleration. Please
allow adequate
time for us to review any amendment prior to the requested effective date of
the registration
statement.

       You may contact Kate Tillan at 202-551-3604 or Mark Brunhofer at
202-551-3638 if you
have questions regarding comments on the financial statements and related
matters. Please
contact Christopher Wall at 202-551-4162 or David Lin at 202-551-3552 with any
other
questions.

                                                           Sincerely,

                                                           Division of
Corporation Finance
                                                           Office of Crypto
Assets

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

March 23, 2023

Asher Genoot  
President  
Hut 8 Corp.  
c/o U.S. Data Mining Corp.  
1221 Brickell Avenue, Suite 900  
Miami, Florida 33131

**Re: Hut 8 Corp.  
Registration Statement on Form S-4  
Filed February 13, 2023  
File No. 333-269738**

Dear Asher Genoot:

We have reviewed your registration statement and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to this letter by amending your registration statement and providing the requested information. If you do not believe our comments apply to your facts and circumstances or do not believe an amendment is appropriate, please tell us why in your response.

After reviewing any amendment to your registration statement and the information you provide in response to these comments, we may have additional comments.

# Registration Statement on Form S-4

# General

1. Please provide disclosure of any significant crypto asset market developments material to understanding or assessing Hut 8's and USBTC's respective business, financial condition and results of operations, or share price since either company's last reporting period, including any material impact from the price volatility of crypto assets.

# Questions and Answers about the Business Combination

# What are the U.S. federal income tax consequences of the Merger..., page 5

2. You disclose that the parties intend that the Hut 8 Share Exchange occurring pursuant to the Arrangement and the Merger, together, be treated as an exchange by Hut 8

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 2

shareholders and USBTC stockholders, respectively, that qualifies under Section 351(a) of the Internal Revenue Code. Since it appears that the tax consequences to the transaction are material to shareholders, please file a tax opinion as an exhibit to the registration statement. Refer to Item 601(b)(8) of Regulation S-K. For guidance, please refer to Staff Legal Bulletin No. 19, Section III.A.2.

Selected Unaudited Financial Data as of January 31, 2023, page 23

3. The combined financial information does not appear to comply with the requirements for the presentation of pro forma financial information in Article 11 of Regulation S-X. Please either remove this presentation, or explain to us the purpose of the presentation and the basis for its presentation. Refer to Item 11-02(a)(12) of Regulation S-X.

Market Price of and Dividends on Common Equity

Comparative Per Share Market Price, page 24

4. Please disclose the market value of Hut 8 on an equivalent per share basis. Refer to Item 3(g) of Form S-4.

Risk Factors, page 27

5. To the extent material, please discuss any reputational harm that either Hut 8 or USBTC may face in light of recent disruptions in the crypto asset markets, including bankruptcies, crypto asset price volatility, and legal proceedings involving prominent crypto platforms. For example, discuss how market conditions have affected how either company's business is perceived by customers, counterparties, and regulators, and whether there is a material impact on its operations or financial condition.

6. Please describe any material risks to either Hut 8's or USBTC's business from the possibility of regulatory developments related to crypto assets and crypto asset markets. Identify material pending crypto legislation or regulation and describe any material effects it may have on either company's business, financial condition, and results of operations.

7. Please describe any material risks that either Hut 8 or USBTC faces related to the assertion of jurisdiction by U.S. and foreign regulators and other government entities over crypto assets and crypto asset markets.

8. To the extent material, please describe any gaps that either Hut 8's or USBTC's respective board or management have identified with respect to risk management processes and policies in light of current crypto asset market conditions as well as any changes they have made to address those gaps.

Asher Genoot  
Hut 8 Corp.  
March 23, 2023  
Page 3

1. 9. Please describe any material financing, liquidity, or other risks that either Hut 8 or USBTC faces related to the impact that the current crypto asset market disruption has had, directly or indirectly, on:
   - • The value of the crypto assets or miners that either company uses as collateral; or
   - • The value of either company's crypto assets, miners or mining real estate used by others as collateral, as applicable in each case.
2. 10. To the extent material to either Hut 8 or USBTC, please describe any of the following risks from disruptions in the crypto asset markets:
   - • Risk from depreciation in either company's stock price.
   - • Risk of loss of customer demand for either company's products and services.
   - • Financing risk, including equity and debt financing.
   - • Risk of increased losses or impairments in either company's investments or other assets.
   - • Risks of legal proceedings and government investigations, pending or known to be threatened, in the United States or in other jurisdictions against either company or its affiliates.
   - • Risks from price declines or price volatility of crypto assets.
   - • Risks of increased regulation of the crypto asset industry.

# Risks Related to USBTC's Business, page 38

11. Please expand on your statement on page 46 that 'an adverse outcome of the Niagara Falls Litigation may affect U.S. Data Technologies Group Ltd.'s permits and operations with respect to its Niagara Falls data site.' Describe the potential practical implications of an adverse decision in the Niagara Falls Litigation, including whether the site may be required to be closed and its impact on USBTC's business performance and results of operations.

# USBTC's Power Generation-Related Risks

# Maintenance, expansion and refurbishment of power generation facilities..., page 58

12. We note your references to 'NYISO' and 'ERCOT' on page 58 of your filing. Please ensure that all acronyms and terms are defined when first used. Refer to Rule 421(b) of the Securities Act of 1933, as amended.

# USBTC's future success will depend upon the value of Bitcoin, page 67

13. Please tell us why you disclose that USBTC will be marking Bitcoin to fair value each quarter since this policy does not appear consistent with that disclosed on page F-31.

# The Business Combination, page 75

14. We note that Hut 8 and USBTC provided certain financial forecasts and projections to the financial advisors and that the financial advisors relied upon these financial projections in preparing their fairness opinions. Please disclose in this section the financial projections

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 4

and forecasts provided to the financial advisors or explain why such information is not material to security holders.

Fairness Opinion of Stifel GMP, page 82

15. Please revise to quantify the fees Hut 8 paid to Stifel GMP when it rendered its fairness opinion. Also please quantify the fees payable to Stifel GMP contingent on completion of the Business Combination or an alternative transaction. Refer to Item 4(b) of Form S-4 and Item 1015(b)(4) of Regulation M-A.

Accounting Treatment of the Business Combination, page 95

16. Please tell us about the pertinent facts and circumstances you considered in determining the acquirer in the business combination. Refer to ASC 805-10, including ASC 805-10-55-12. Further, you disclose that the preliminary assessment of the accounting acquirer is subject to evaluation and may be impacted by matters such as New Hut board rights related to tie-break votes and the relative fair values of USBTC and Hut 8 at closing. Include a discussion of these matters in your response.

The Business Combination Agreement

Conditions to Completion of the Business Combination, page 114

17. We note your disclosure that certain conditions to the consummation of the business combination may be waived by mutual consent of the Parties. Please specify which, if any, conditions may not be waived by mutual consent of the Parties.

Information About Hut 8, page 125

18. To the extent material, please discuss how the bankruptcies of companies in crypto asset-related businesses and the downstream effects of those bankruptcies have impacted or may impact Hut 8's business, financial condition, customers, and counterparties, either directly or indirectly. Clarify whether Hut 8 has material assets that may not be recovered due to the bankruptcies or may otherwise be lost or misappropriated.

19. To the extent material to an understanding of Hut 8's business, please describe any direct or indirect exposures to other counterparties, customers, custodians, or other participants in crypto asset markets known to:
- Have filed for bankruptcy, been decreed insolvent or bankrupt, made any assignment for the benefit of creditors, or have had a receiver appointed for them.
- Have experienced excessive redemptions or suspended redemptions or withdrawals of crypto assets.
- Have the crypto assets of their customers unaccounted for.
- Have experienced material corporate compliance failures.

20. To the extent material, please explain whether Hut 8's crypto assets serve as collateral for any loan, margin, rehypothecation, or other similar activities to which Hut 8 or its affiliates are a party. If so, identify and quantify the crypto assets used in these financing

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 5

arrangements and disclose the nature of Hut 8's relationship for loans with parties other than third-parties. State whether there are any encumbrances on the collateral. Discuss whether the current crypto asset market disruption has affected the value of the underlying collateral. Please include similar disclosure for Hut 8's miners used as collateral.

21. Please revise to address the following:
- Discuss Hut 8's intentions to mine, invest in or transact in crypto assets other than Bitcoin and update this disclosure in future filings as appropriate;
- Describe Hut 8's process, if any, for analyzing whether a particular crypto asset that it intends to mine, invest in, or transact in is a "security" within the meaning of Section 2(a)(1) of the Securities Act, including whether and how the recent completion of Ethereum's transition to Proof-of-Stake consensus has impacted its analysis. Disclose that this is a risk-based judgment and does not constitute a legal determination binding on regulators or the courts; and
- Expand the risk factors section to describe the specific potential consequences to Hut 8 and to investors if it is subsequently determined that Hut 8 has participated in the unregistered issuance or distribution of securities, including the specific risks inherent in its business model that may necessitate corrective measures as a result of judicial or regulatory actions.

22. Refer to your disclosure in your Annual Information Form, which has been filed as Exhibit 99.1 to Hut 8's Annual Report on Form 40-F for the year ended December 31, 2021 and revise to address the following points:
- On page 11, you disclose that Hut 8 provides cloud services and data centre colocation services to its customers. Please revise to briefly discuss Hut 8's fee structure for providing such services to its customers and include illustrative examples, as appropriate.
- On page 12, you disclose that Hut 8 has entered into agreements with each of ATCO Electric Ltd., City of Medicine Hat and Validus for the provision of power or use of electricity. Please revise to describe in greater detail the material terms and conditions of these agreements, including, without limitation, the material obligations of the parties, the duration of the agreement and the material termination provisions.
- On page 13, you state that the primary seasonality that Hut 8 experiences is related to potential changes in electricity prices and that electricity is your largest expense. Please revise to provide a discussion of your average cost of electricity for the periods presented, and whether there are any known trends regarding the fluctuations in the cost of electricity. In addition, consider including a discussion of the differences in the cost of electricity for each of the geographic regions you operate.
- On page 16, we note the statements in the bottom risk factor that the Commission's views regarding whether a particular crypto asset falls within the definition of a "security" under the U.S. federal securities laws have "evolved over time and it is difficult to predict the direction or timing of any continuing evolution. It is also possible that a change in the governing administration or the appointment of new SEC commissioners could substantially impact the views of the SEC and its staff."

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 6

Please remove these statements as the legal tests are well-established by U.S. Supreme Court case law and the Commission and staff have issued reports, orders, and statements that provide guidance on when a crypto asset may be a security for purposes of the U.S. federal securities laws.

Information About USBTC, page 129

23. Please revise this section of your filing to address comments 18 through 20 above as they apply to your disclosure concerning USBTC.

Business Overview, page 129

24. Please discuss USBTC's intentions to mine, invest in or transact in crypto assets other than Bitcoin and update this disclosure in future filings as appropriate.
25. You disclose that USBTC owns a 50% interest in the King Mountain JV with a "leading North American energy company." Please identify your joint venture partner.

Reactor: Energy Curtailment, page 130

26. We note your disclosure regarding Reactor, "an advanced, algorithmic energy curtailment platform that USBTC believes will drive significant Bitcoin mining profitability for USBTC." Please provide further detail regarding Reactor, its development, its role in USBTC's current operations and any measurable changes in energy efficiency, profitability or any other relevant metrics that may drive USBTC's results of operations.

Custody Policy, page 132

27. Please revise this section to address the following:
- Provide quantified disclosure regarding the respective portions of USBTC's Bitcoin balance held by each of the third-party custodians referenced.
- Disclose the material terms of USBTC's arrangement with each third-party custodian, including, for example, in what manner the relevant custodian is required to store USBTC's crypto assets, whether it is contractually required to hold USBTC's crypto assets in cold storage, what security precautions the custodian is required to undertake, what inspection rights USBTC has, and what type of insurance, if any, the custodian is required to have to protect USBTC from loss.

Also please apply this comment to the same or similar disclosures of Hut 8 throughout the filing, as applicable.

28. You disclose that USBTC uses third-party custody solutions to safeguard its bitcoin and "does not currently hold any bitcoin for third parties." Please disclose whether USBTC has any current plans or intentions to hold any crypto assets for third parties in the future.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 7

King Mountain JV, page 133

29. Please disclose the material terms of the King Mountain JV Senior Note, including repayment terms, principal events of default, and any security interests that the lenders may hold. Please clarify the nature of USBTC's assumption of the note, including whether the JV partner has also assumed the note.

Anchorage, page 134

30. We note your disclosure that the Refinanced Loan Agreement with Anchorage Lending CA, LLC is "repaid through profits generated from those certain USBTC miners underlying the security interest, as further specified in the Refinanced Loan Agreement...USBTC is not required to make a minimum monthly payment." Please provide further disclosure regarding USBTC's repayment obligations, including how profit from the relevant miners is determined, what would occur in the event that the relevant miners were rendered inoperative or generated lower profit than expected, what would constitute a payment default under the agreement and other relevant terms.

Cost of Electricity, page 145

31. On page 146, if material, please disclose the amount of demand response payments netted within your costs of electricity for each period. If not material, separately tell us the amounts netted for each period.

Management's Discussion and Analysis of Financial Condition and Results of Operations of USBTC

Trends and Key Factors Affecting USBTC's Performance

Halving, page 145

32. Please disclose the steps you are taking to address and/or mitigate the impacts of halving, as well as the potential impact of decreased rewards on revenues and economics of your business model.

Key Operating and Financial Indicators, page 146

33. We note the trends and key factors affecting your performance discussed on page 145. Please include in the table on page 146 quantification of your key indicators for the network hash rate and difficulty, and the number of miners for each period presented to provide context and support trends in your key operating and financial indicators. If material, also disclose the number of miners that were non-operational in those periods.

34. Please balance your tabular disclosure and following narrative disclosures to include, with equal or greater prominence, the most comparable GAAP measure to Adjusted EBITDA. See Item 10(e)(1)(i)(A) of Regulation S-K and Question 102.10(a) of the Compliance and Disclosure Interpretations on Non-GAAP Financial Measures.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 8

35. Please revise to include a breakeven analysis for USBTC's mining operations or any other crypto assets that it earns or mines that compares the cost to earn or mine one crypto asset with the value of the crypto asset. Please provide a discussion of how USBTC expects the Business Combination to impact its breakeven analysis in the future. Also please apply this comment to the same or similar disclosures of Hut 8 throughout the filing, as applicable.

Critical Accounting Policies and Significant Estimates, page 148

36. Please revise your disclosure to provide the qualitative and quantitative information necessary to understand the estimation uncertainty and the impact the critical accounting estimates have had or are reasonably likely to have on your financial condition or results of operations to the extent the information is material and reasonably available. In your revised disclosure discuss why each critical accounting estimate is subject to uncertainty and, to the extent the information is material and reasonably available, how much each estimate and/or assumption has changed over a relevant period, and the sensitivity of the reported amount to the methods, assumptions and estimates underlying its calculation. See Item 303(b)(3) of Regulation S-K and Instruction 3 to Item 303(b).

Digital Asset Mining, page 150

37. Please expand your disclosure regarding USBTC's arrangements with mining pool operators to address the following:
- Provide more detailed disclosure regarding each mining pool, including how each pool operates, the transaction fees paid and the amount of reward received from each pool.
- Disclose the material terms of any service agreements with such providers, including the term and termination provisions thereof.
- Clarify how USBTC calculates or verifies its proportion of the contributed computing power resulting in the amount of cryptocurrency awarded.

Also please apply this comment to the same or similar disclosures of Hut 8 throughout the filing, as applicable.

38. Please briefly discuss whether USBTC's business strategy is to hold its crypto assets for investment or convert them into fiat currency immediately upon receipt or soon thereafter. Discuss the average period between receipt of USBTC's crypto assets and the subsequent conversion into fiat currency and quantify the fees incurred. Please revise to disclose whether USBTC has a specific policy for how it will determine when to sell crypto assets for fiat currency to fund operations or growth and through what exchange or if USBTC intends to hold its mining rewards for investment purposes. To the extent USBTC has an agreement with a third-party exchange for converting crypto assets to fiat currency, please disclose the material terms and file the agreement as an exhibit or tell us why this is not required by Item 601(b)(10) of Regulation S-K. Also please apply this comment to the same or similar disclosures of Hut 8 throughout the filing, as applicable.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 9

# Common Stock Valuations, page 152

39. Please provide us your analysis supporting the decline in the fair value of USBTC common stock from $4.34 per share in March 2022 to $0.01 per share in August 2022. In your response also tell us why the exercise price of the options granted in August 2022 was reduced from the March 2022 exercise price of $4.34 per share to only $1.78 per share if the fair value of common stock at that time was $0.01 per share.

# Results of Operations, page 153

40. Please discuss, including quantitatively where possible, all known trends or uncertainties that have had, or that you reasonably expect will have, a material favorable or unfavorable impact on revenue or results of operations. We note by way of example that USBTC is currently subject to the Niagara Falls Litigation (page 46).

# The year ended June 30, 2022 compared to the period from December 4, 2020 (inception) through June 30, 2021, page 156

41. It appears that the $3.8 million of payments to your officers disclosed in the last two paragraphs on page 162 may be included in the $5.3 million of cash payments to certain employees and advisors included in your one time cost non-GAAP adjustment. Please confirm whether this is true or not. Regardless, tell us how cash payments to current employees do not represent normal cash operating expenses similar to other cash compensation paid to your employees that should not be removed from non-GAAP performance measures under Question 100.01 of the Compliance and Disclosure Interpretations on Non-GAAP Financial Measures.

# Unaudited Pro Forma Condensed Combined Statement of Financial Condition, page 194

42. Please consider revising the title of this section as your pro forma financial information is not limited to a statement of financial condition.
43. Please revise your introductory disclosure to also discuss the debt extinguishment transaction presented in Note 3 as required by Item 11-02(a)(2) of Regulation S-X.
44. Please tell us your consideration for presenting the Note 2 Acquisition Transaction Adjustments before the Note 3 Debt Extinguishment adjustments in your pro forma financial statements and including a subtotal column presenting the proposed business combination to differentiate it from the debt extinguishment.
45. With respect to other transactions or events that have occurred such as the Niagara Falls litigation of USBTC and the shut down of Hut 8's North Bay facility and the associated relocation of miners, please tell us your consideration for presenting Management's Adjustments under Item 11-02(a)(7) of Regulation S-X. In your response tell us whether the inclusion of pro forma adjustments for these events would enhance an understanding of the pro forma effects of your proposed transaction since we note these transactions

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 10

are not included or discussed. If so, revise your presentation to provide Management's Adjustments or tell us why they are not warranted. If not, tell us why they would not enhance such an understanding.

Unaudited Pro Forma Combined Statement of Operations, page 196

46. Please revise pages 196 and 197 to present historical basic and diluted per share amounts and the number of shares used to calculate such per share amounts on the face of the pro forma condensed statement of operations. Refer to Item 11-02(a)(9)(i) of Regulation S-X.

Note 1. Basis of Presentation, page 198

47. You disclose that New Hut elected not to present Autonomous Entity Adjustments. We note that under Item 11-02(a)(6) of Regulation S-X, you must include adjustments that depict the registrant as an autonomous entity if the conditions in Item 11-01(a)(7) are met (i.e., the registrant previously was a part of another entity and such presentation is necessary to reflect operations and financial position of the registrant as an autonomous entity). As the presentation of Autonomous Entity Adjustments is not optional, please revise your disclosure to remove the indication that you elected not to provide them.

Note 2. Business Combination Transaction Adjustments, page 199

48. In the introduction to the table in pro forma adjustment a) you disclose that you determined the purchase using the share price as of February 10, 2023, but in the table you disclose that the price is as of February 6, 2022. Please revise.
49. Please disclose in more detail how you determined the adjustment to depreciation and amortization expenses. For example, explain how you changed the method of depreciation and/or useful lives of the assets.
50. Please tell us how your pro forma statement of financial position presents current and deferred income taxes. In your response explain why there are no apparent pro forma adjustments for income taxes and reference for us the authoritative literature you rely upon to support your position.

Note 3. Adjustment for USBTC debt extinguishment, page 201

51. Please explain to us why the pro forma footnotes do not include any impact to your revenues and related costs given that you exchanged miners with the finance company. Refer to Item 11-02(a)(11)(i) of Regulation S-X. Please also disclose the number of miners exchanged.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 11

Note 4. Adjustments for the effect of reclassifications, foreign exchange and IFRS / U.S. GAAP differences for Hut 8, page 201

52. We note that the tables all state that the amounts are in thousands of U.S. dollars. It appears that only the amounts in the last column of the tables are in U.S. dollars and the other columns are in Canadian dollars. If true, please revise to clarify.

53. Please disclose the basis for the conversion from Canadian dollars to U.S. dollars.

54. For U.S. GAAP purposes, you classify Hut 8's cryptocurrency in current assets. Please tell us how your classification of cryptocurrencies as current assets is consistent with the definition of current assets in ASC 210-10-20.

55. We note that you made a U.S. GAAP adjustment to reverse the impact of applying the revaluation model for cryptocurrency under IFRS as the revaluation model is prohibited under U.S. GAAP and any impairment losses recognized cannot be subsequently reversed. With respect to the accounting for impairment under U.S. GAAP please address the following and reference for us the authoritative literature you rely upon to support your accounting:
- Briefly disclose Hut 8's accounting policy for impairment of cryptocurrency under U.S. GAAP.
- Disclose the timing of the assessment. Tell us whether you considered using the lowest intraday amount. Refer to ASC 350-30-35-18B.
- Tell us the market(s) you use to determine the quoted price used to assess impairment for Hut 8's cryptocurrency holdings.
- Tell us how you identified the principal markets. Explain to us the process you undertook to evaluate the various exchanges on which Hut 8 trades and how this process and ultimate conclusion conforms to the guidance in ASC Topic 820 and ASC 820-10-35-5A.

56. We note that you reflect no U.S. GAAP adjustments to the Hut 8 financial statements for the recognition of revenue. Please provide us with a thorough accounting analysis, including what literature applies to these arrangements (e.g., ASC 842, ASC 606, ASC 460, etc.). To the extent ASC 606 is the applicable guidance, please ensure your analysis describes, in appropriate detail, your application of the five steps in ASC 606 and cites the authoritative literature supporting that application. Also ensure your analysis highlights significant accounting judgments you made and the alternatives, if any, that you considered and rejected. In your response, specifically address the following for Hut 8's self-mining:
- Provide us a representative sample of the contracts with Hut 8's customers for self-mining.
- Substantiate how the provision of computing power to the mining pool is Hut 8's sole performance obligation.
- Tell us the types of cryptocurrencies mined by Hut 8 (for example, bitcoin, ethereum, etc.).

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 12

- Tell us whether there are any penalties for contract termination by either party. Tell us what happens if Hut 8 cancels midterm. Also explain whether Hut 8 can withdraw computing power midterm and reinstitute it later that same day.
- Tell us how you determine contract inception.
- Tell us the payment terms for cryptocurrencies earned from the mining pool operator, including identifying the form of consideration (including the type of cryptocurrency), how the amount of consideration is determined, and when Hut 8 is paid.
- Explain the timing of when Hut 8 measures the value of any non-cash consideration under ASC 606-10-32-21.
- Explain the application of any variable consideration constraints.
- Tell us the market used to value the non-cash consideration and how it was determined. Explain to us whether this is your principal market.

57. Please tell us why there is no income tax impact of GAAP adjustments on the historical statement of operations for Hut 8 for the three months ended September 30, 2022 and no apparent US GAAP income tax adjustments on the historical statement of financial condition at September 30, 2022.

58. Regarding adjustment 4(c), please tell us why there is no warrant liability under US GAAP at either the Hut 8 level or at the combined pro forma level. In your response specifically clarify whether the warrants are exercisable in Canadian dollars or U.S. dollars and the impact this has on your classification at either the Hut 8 or combined pro forma level.

# Financial Statements of USBTC

# Note 3. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements

# Revenue Recognition

# Cryptocurrency mining, page F-9

59. Please address the following related to your cryptocurrency mining revenue recognition. In your response, where appropriate, reference for us the authoritative literature you rely upon to support your accounting:
- Provide us with the contracts you have with each of your mining pool operators.
- Tell us specifically how you determine contract inception for each mining pool contract.
- Tell us the payment terms from each mining pool operator. Explain to us the method you use to estimate variable consideration in your arrangements and how you apply the variable consideration constraint in ASC 606-10-32-11 through 32-13. Also describe for us the agreed-upon calculation that measures the bitcoin that could have been mined with your contributed hashrate.
- In your disclosure, clarify whether just the transaction fee or all of the consideration received for your mining pool activities is variable and whether it is constrained.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 13

- You disclose that you measure consideration received at fair value by using the quoted price of the related cryptocurrency at contract inception and you also disclose that you value the non-cash consideration at fair value when notified of the earnings. Please reconcile and revise as necessary and tell us how you considered ASC 606-10-32-21 which requires noncash consideration to be measured at contract inception.
- Tell us why it is appropriate to deduct operating fees to the mining pool operator from revenue. Clarify whether the single amount (i.e., the net fees received) represents the transaction price paid to you in satisfaction of your performance obligation to the pool operator and if the amounts retained by the pool operator relate to the activities it must undertake to fulfill its contract with you.
- Tell us your accounting for the receivables denominated in cryptocurrencies.

60. You disclose that your enforceable right to compensation only begins when you provide computing power to the mining pool operator, and exists in any period that you provide computing power (hourly or daily period depending on the mining pool operator). Please address how this disclosure reconciles with your determination of the timing of contract inception. In circumstances when you are not performing at the beginning of each hour / day but commence performance at some point within the hour / day, please clarify for us when contract inception occurs. Refer, for example, to ASC 606-10-25-4. Similarly, if you start and stop performing more than one time within an hour / day, tell us what constitutes contract inception and how many contracts you have during that hour. Further, if you provide continuous performance across more than one hour / day, tell us what constitutes contract inception and contract duration and the reasons why. Please cite the relevant ASC 606 guidance that supports your determination.

Hosting services, page F-10

61. Please tell us the material rights and obligations of the parties to your hosting transactions. Provide us with a thorough accounting analysis, including what literature applies to these arrangements (e.g., ASC 842, ASC 606, ASC 460, etc.). To the extent ASC 606 is the applicable guidance, please ensure your analysis describes, in appropriate detail, your application of the five steps in ASC 606 and cites the authoritative literature supporting that application. Also ensure your analysis highlights significant accounting judgments you made and the alternatives, if any, that you considered and rejected.

Mining equipment sales, page F-11

62. Please tell us the material rights and obligations of the parties to your mining equipment transactions. Provide us with a thorough accounting analysis, including what literature applies to these arrangements (e.g., ASC 842, ASC 606, ASC 460, etc.). To the extent ASC 606 is the applicable guidance, please ensure your analysis describes, in appropriate detail, your application of the five steps in ASC 606 and cites the authoritative literature supporting that application. Also ensure your analysis highlights significant accounting judgments you made and the alternatives, if any, that you considered and rejected.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 14

63. Please tell us why you do not have mining equipment inventory on your balance sheet. Tell us the nature of the mining equipment you sell and how and when you obtain the equipment for sale. Tell us how a customer takes possession or control of the equipment and describe any obligation you have to dispose of the mining equipment. Also tell us whether your mining equipment sales include any other performance obligations, such as hosting services.

Note 15. Subsequent Events

Acquisition, page F-19

64. You disclose that on December 6, 2022, you acquired a 50% membership interest in a joint venture. Please tell us about your analysis in determining whether you are required to provide audited financial statements and pro forma financial information for this acquisition. Refer to Rule 3-05 and Article 11 of Regulation S-X.

Strategic Operator Agreements, page F-19

65. Please address the following related to your strategic operator agreements. In your response, where appropriate, reference for us the authoritative literature you rely upon to support your accounting:
- Tell us the significant terms of your strategic operator agreements, including payment terms.
- Tell us your revenue recognition accounting policy for the strategic operator agreements.
- Tell us how you measure progress toward satisfaction of the performance obligation.
- Tell us how you determine the transaction price, including estimating variable consideration and assessing whether an estimate of variable consideration is constrained.

Consolidated Statements of Operations, page F-24

66. Please state separately the amount of costs of revenues for tangible goods sold and services. Refer to Item 5-03(b)(2) of Regulation S-X.

Consolidated Statements of Cash Flows, page F-26

67. Please tell us why it is appropriate to classify the proceeds from the sale of cryptocurrencies as an operating activity and reference for us the authoritative literature you rely upon to support your accounting. In your response, tell us how long you hold cryptocurrencies before selling them for cash. Provide us the general time frame you hold these cryptocurrencies including the average time you hold them as well as the shortest and longest time periods you have held cryptocurrencies before sale.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 15

Note 3. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Cryptocurrency, net, page F-31

68. You classify your cryptocurrency (bitcoin) in current assets. Please tell us how your classification of cryptocurrencies as current assets is consistent with the definition of current assets in ASC 210-10-20.

69. You disclose that you perform a quantitative impairment test daily, determining the fair value of your cryptocurrency by using the quoted price as determined by your principal market. Please address the following and reference for us the authoritative literature you rely upon to support your accounting:
- Tell us the market(s) you use to determine the quoted price used to assess impairment for your cryptocurrency holdings.
- Tell us how you identify the principal market. Explain to us the process you undertook to evaluate the various exchanges on which you trade and how this process and ultimate conclusion conforms to the guidance in ASC Topic 820 in general and specifically in ASC 820-10-35-5A.
- Disclose the timing of the quoted price used in your assessment. Tell us whether you considered using the lowest intraday amount. Refer to ASC 350-30-35-18B.
- Explain how you apply the qualitative assessment given the existence of a quoted price on apparently active markets.

Stock-based compensation, page F-34

70. Please revise your policy disclosure to clarify how/when you record compensation for awards with market conditions versus those with performance conditions.

Note 5. Cryptocurrency, page F-36

71. Please revise your rollforward of cryptocurrencies to remove the proceeds from sale and realized gains/losses on crypto currencies and replace them with the carrying value of the cryptocurrencies sold. Provide sufficient supplementary disclosure below the reconciliation to relate the carrying value of cryptocurrencies sold to the realized gains/losses on cryptocurrencies sold on your statements of operations. In this regard, we note that the sale proceeds themselves does not impact the cryptocurrencies account balance on your general ledger. Furthermore, tell us why the "proceeds from the sale of cryptocurrency in accounts receivable" is a line item in your rollforward if it does not represent carrying value and/or was not included in the beginning balance of cryptocurrencies.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 16

# Exhibits

72. Please revise to disclose the material terms of the lease agreement between U.S. Data Technologies Group Ltd. and 2747 Buffalo Avenue, LLC filed as Exhibit 10.12 to the registration statement.

73. The fairness opinion provided by Stifel GMP filed as Exhibit 99.1 indicates that it is provided to the Board of Directors of Hut 8 for "its exclusive use only...and may not be used or relied upon by any other person...without [Stifel GMP's] prior written consent." Please also refer to similar language contained in the fairness opinion provided by Kroll, LLC filed as Exhibit 99.2. Please remove this limitation on reliance as it is inconsistent with the disclosure relating to the fairness opinions.

74. Please tell us what consideration you have given to filing the following documents as exhibits to the registration statement:
- any agreements that memorialize USBTC's joint venture arrangements in connection with its 50% ownership interest in the King Mountain JV, as discussed on page 133; and
- the property management agreements that USBTC has entered into with the owners of Charlie, Delta, and Echo, respectively, as discussed on pages 44 and 133.

Please refer to Item 601(b)(10) of Regulation S-K.

75. Please ensure each exhibit is in the proper text-searchable format. See Rules 301 and 304 of Regulation S-T. For example, we note Exhibits 10.6 through 10.8 and 10.12 are not in text-searchable format.

Asher Genoot
Hut 8 Corp.
March 23, 2023
Page 17

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

Refer to Rules 460 and 461 regarding requests for acceleration. Please allow adequate time for us to review any amendment prior to the requested effective date of the registration statement.

You may contact Kate Tillan at 202-551-3604 or Mark Brunhofer at 202-551-3638 if you have questions regarding comments on the financial statements and related matters. Please contact Christopher Wall at 202-551-4162 or David Lin at 202-551-3552 with any other questions.

Sincerely,

Division of Corporation Finance
Office of Crypto Assets