Hut 8 CSO Michael Ho Enters Prepaid Forward for 1.5M Shares

What Happened

• Michael Ho, Chief Strategy Officer and director of Hut 8 Corp. (HUT), caused Springtide Creek Ltd. (a vehicle he wholly owns) to enter a prepaid variable share forward (VPF) on Sept 29, 2026. Springtide received $58,326,600 up front (based on a $40.00 floor price) in exchange for the obligation to deliver up to 1,500,000 Hut 8 common shares (or, at Springtide’s election, an equivalent cash amount) on the agreement’s maturity date.

Key Details

• Transaction date: 2026-09-29; Form 4 filed 2026-09-30 (filed timely).
• Cash received: $58,326,600 (prepaid), calculated using a $40.00 per-share Floor Price and discounted for time value of money.
• Instrument: Prepaid variable share forward (derivative). Obligation to deliver a variable number of shares at maturity (May 17, 2027) based on the 3-day VWAP starting May 13, 2027.
• Settlement mechanics (simplified):
  • If the settlement price ≤ $40.00 (Floor), Springtide will deliver all 1,500,000 shares.
  • If settlement price is > $40.00 and ≤ $221.00 (Cap), the number of shares delivered = 1,500,000 × (Floor / Settlement Price).
  • If settlement price > $221.00, a modified fraction (described in the filing) determines delivered shares.
• Springtide has pledged the forward shares to secure its obligations but retains ownership and voting rights during the pledge.
• Springtide Creek Ltd. is a BVI company wholly owned and controlled by Michael Ho (the reporting person).
• Shares owned after the transaction: not specified in the Form 4.

Context

• A prepaid variable forward is a financing/liquidity tool: the owner receives cash now and agrees to deliver a variable number of shares (or cash) later based on future stock price. It is a derivative, not a simple open-market sale, and the filing does not by itself signal the insider’s market view.
• Springtide retains voting rights and legal ownership during the pledge, so Ho maintains some governance influence until settlement (subject to the pledge terms).