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 a February 7 announcement, Hut 8 saying The boards of directors of the two companies unanimously approved a definitive business combination agreement intended to combine the mining companies into what will become one US-based business. Once the deal is finalized, Hut 8 Mining and US Bitcoin, or USBTC, will become subsidiaries of New Hut, with shareholders collectively owning 50% of the new merged company.
"Bringing together Hut 8's operating history and diversified revenue streams with scalable US Bitcoin mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong US-based player that is ready and able to take advantage of additional opportunities as they arise,โ said Hut 8 CEO Jaime Leverton .
News: Hut 8 and US Bitcoin Corp have announced a merger of equals, hoping to establish a new Hut 8 as a publicly traded, large-scale North American Bitcoin miner with diversified fiat revenue streams. Read more: https://t.co/TL0ZHpkKqu
โ 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. This will include five sites in New York, Texas, and the Canadian province of Alberta, with a self-mining capacity of 5.6 exhashes per second (EH/s).
Leverton added:
"This transaction has provided us with the opportunity to take advantage of the significant stack of unencumbered Bitcoin that we have accumulated to date. [...] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling our stack, and/or exploring various debt options.โ
The merger is still subject to judicial and regulatory approval from US and Canadian authorities. Hut 8 added that USBTC faced "a legal dispute" with the city of Niagara Falls in New York; according to reports, many residents have criticized mining operations due to noise pollution.
Related: Bitcoin miner Hut 8 takes Ontario energy provider to court
WonderFi, another Canada-based crypto company backed by shark tank star Kevin O'Leary, announced in January that he was considering a merger with Coinsquare, supposedly with the goal of โcreating a Canadian crypto giant.โ In the United States, the blockchain company GammaRey also signed a merger agreement with the analysis company GoLogiq, whose goal is wealth management for the younger generation.
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