The merger, which will create the company “New Hut,” still needs to be approved by a court and government agencies in the U.S. and Canada.
Hut 8 Mining, which is based in Canada, has said that it wants to merge with U.S. Bitcoin to make Hut 8 Corp, or “New Hut.”
In a press release on February 7, Hut 8 said that the boards of directors of the two mining companies had unanimously approved a final business combination agreement. This agreement will bring the two mining companies together into a new business based in the United States. Once the deal is done, Hut 8 Mining and U.S. Bitcoin, or USBTC, will become subsidiaries of New Hut. Shareholders will own 50% of the new company, which will be called New Hut.
“Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable 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, U.S.-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, expecting to establish a new Hut 8 as a large-scale publicly traded North American Bitcoin miner with diversified fiat revenue streams. 📰Read more: https://t.co/TL0ZHpkKqu 📰
After the merger, it is said that the New Hut company will have access to about 825 megawatts of power across six facilities for crypto mining and other operations. This will include five sites in New York, Texas, and Alberta, Canada, with the ability to mine 5.6 exahashes per second (EH/s) on their own.
Leverton also wrote:
“This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date […] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options.”
The merger still needs court and government approval in both the U.S. and Canada. Hut 8 also said that USBTC was in “a legal dispute” with the City of Niagara Falls in New York. Many locals are said to have complained about the noise pollution caused by the mining operations.
WonderFi, a Canadian crypto company backed by Kevin O’Leary of “Shark Tank,” said in January that it was thinking about merging with Coinsquare to “create a Canadian crypto giant.” In the US, blockchain company GammaRey signed a merger agreement with analytics company GoLogiq. This was done to help younger people manage their wealth.
