The merger creates a US-based crypto mining powerhouse that could change the market
Cryptocurrency mining firms Hut 8 Mining Corporation and US Bitcoin Corporation (USBTC) are uniting operations in an all-stock merger to create a new US-focused company named Hut 8 Corp (New Hut).
Canadian-based Hut 8 revealed the culmination of the merger on November 30, which is being called the “largest mergers and acquisitions transaction” in crypto, according to New Hut CEO Jaime Leverton. Prior to the merger, Leverton was CEO of Hut 8 for more than three years.
After much anticipation… we’re thrilled to announce the completion of our merger of equals with USBTC! We are now officially operating as a U.S.-domiciled entity, Hut 8 Corp. with 825 MW of energy under management across 11 sites with self-mining, hosting, managed services, and… pic.twitter.com/yJ3uou326o
— Hut 8 (@Hut8Mining) November 30, 2023
The union will result in Hut 8 common stocks being delisted from the Toronto Stock Exchange and Nasdaq before December 4 and replaced by New Hut under the ticker symbol “HUT.” Hut8 shareholders were awarded 20% of one share of New Hut common stock for every Hut 8 share they held.
New Hut President Asher Genoot announced the company’s strategy to prepare for the impending Bitcoin halving. By integrating resources, “New Hut has access to approximately 825 MW [megawatts] of gross energy across six sites with self-mining, hosting, and managed service operations,” reads the announcement.
Hut8 was granted final clearance for the merger from the Supreme Court of British Columbia in September, which was subject to regulatory and court approval by the US and Canada. In addition to the legal complications, USBTC was experiencing “a legal dispute” with the City of Niagara Falls, NY, against citizens who had condemned the mining operations for their supposed noise pollution. The conflict was resolved on April 7.
Block and X (formerly Twitter) co-founder Jack Dorsey took recent steps to encourage decentralizing Bitcoin mining operations, leading a $6.2 million seed round for Mummolin, which promotes more transparency in the mining process and allows miners to receive block rewards directly from Bitcoin instead of mining pools.
