Canada-based cryptocurrency mining company Hut 8 Mining has announced plans to merge with US Bitcoin to form Hut 8 Corp, or “New Hut”.
In an announcement on February 7, Hut 8 said that the board of directors of the two companies unanimously approved a definitive business combination agreement that aims to combine the mining company in what will be a business in the United States. Once the deal is complete, Hut 8 Mining and US Bitcoin, or USBTC, will become subsidiaries of New Hut, with shareholders together owning 50% of the new combined company.
“Combining Hut 8’s operational track record and diversified revenue streams with scalable US Bitcoin mining sites, a sizable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversification strategy and positions us for short-term growth, but also establishes us as a strong, US-based player that is ready and able to seize additional opportunities as they arise,” said Hut 8 CEO Jaime Leverton.
News: Hut 8 and US Bitcoin Corp have announced a merger of equals, expected to establish the new Hut 8 as a large-scale publicly traded North American Bitcoin miner with various fiat revenue streams. Read more: https://t.co/TL0ZHpkKqu
— Hut 8 (@Hut8Mining) February 7, 2023
After the merger, the New Hut company will have access to approximately 825 megawatts in six facilities for crypto mining and other operations. It will include five sites in New York, Texas, and the Canadian province of Alberta, with an independent mine capacity of 5.6 exahashes per second (EH/s).
Leverton added:
“This transaction has given us the opportunity to use a significant and unencumbered Bitcoin stack that we have HODLed until now. […] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoins we mine, selling from the stack and/or exploring various debt options.
The merger is still subject to court and regulatory approvals by US and Canadian authorities. Hut 8 added that the USBTC is facing a “legal dispute” with the City of Niagara Falls in New York – many residents have reportedly criticized the mining operation for noise pollution.
related: Bitcoin miner Hut 8 is taking a stoush with Ontario power supplier to court
WonderFi, another Canadian-based crypto company supported Shark Tank star Kevin O’Leary, announced in January that he is considering a merger with Coinsquare, reportedly aiming to “create a Canadian crypto giant”. In the United States, blockchain company GammaRey also signed a merger agreement with analytics company GoLogiq, targeting wealth management for the younger generation.