Crypto mining companies Hut 8 Mining Corp. and US Bitcoin Corp (USBTC) have combined operations in a merger of equals to form a new US-domiciled entity called Hut 8 Corp (New Hut).
On November 30, Canadian Bitcoin (btc) mining facility Hut 8 Mining Corp Announced an all-stock merger with USBTC, which has been called the โbiggest M&A transactionโ in crypto by New Hut CEO Jaime Leverton. Prior to the merger, Leverton served as CEO of Hut 8 Mining in Toronto for more than three years.
After much anticipation...we are thrilled to announce the completion of our merger of equals with USBTC! We now officially operate as a US-domiciled entity, Hut 8 Corp., with 825 MW of power under management across 11 sites with self-mining, hosting, managed services and... pic.twitter.com/yJ3uou326o
โ Hut 8 (@Hut8Mining) November 30, 2023
The merger will result in the delisting of Hut 8 common shares from the Toronto Stock Exchange and the Nasdaq by December 4, 2023. They will instead be replaced by New Hut common shares under the symbol "HUT."
In the midst of the delisting and relisting process, Hut8 shareholders received 1 New Hut common share for each Hut 8 share they owned. Asher Genoot, president of New Hut, revealed the company's plan to prepare for the upcoming Bitcoin halving. By combining resources, "New Hut has access to approximately 825 megawatts (MW) of gross energy across six sites with self-mining, hosting and managed services operations," the announcement reads.
Hut8 received final clearance from the Supreme Court of British Columbia will complete a merger with USBTC in September 2023. However the merger planning process started in February 2023.
At the time, the merger was subject to judicial and regulatory approval by US and Canadian authorities. Adding to the legal complexity, USBTC was undergoing โa legal disputeโ with the city of Niagara Falls in New York against residents who reportedly criticized mining operations for noise pollution.
Related: Bitcoin Mining Company Phoenix Group Delays Stock Listing
As two major crypto miners teamed up to leverage combined resources, X (formerly Twitter) and Block co-founder Jack Dorsey have taken steps to decentralize the Bitcoin mining operation.
Dorsey recently led a $6.2 million seed round for Mummolin, the parent company of the new decentralized Bitcoin mining pool called Ocean, which is designed to provide greater transparency in the mining process and allow miners to receive rewards in block directly from Bitcoin instead of BTC mining pools.
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