Canadian Bitcoin mining company Hut 8 is set to finalize its merger with US Bitcoin (USBTC). The Supreme Court of British Columbia recently approved the union, paving the way for a new entity that will significantly impact Bitcoin mining and high-performance computing.
Hut 8 Expanding Operations
Announced in February 2023, the merger awaited several levels of approval. Besides shareholders of both companies, regulatory bodies also had their say. Consequently, the coalition aims to establish “New Hut,” a U.S.-based, publicly traded entity. Moreover, the new establishment plans to tap into an 825-megawatt capacity across six Bitcoin mining and data center facilities.
However, the merger has yet to be a deal since a few more conditions, such as approval from USBTC shareholders, must be met. Significantly, Hut 8 expects to complete the final transaction before 2023 comes to a close.
Strategic Movements and Alliances
The new corporation also intends to list its shares on the Nasdaq and Toronto stock exchanges under the “HUT.” However, the shareholders must complete the necessary paperwork to receive New Hut common stock once the deal is sealed.
Moreover, the merger is exciting for Hut 8, which recently moved 6,400 ASIC mining rigs from an inactive facility in Ontario to Texas. An ongoing legal dispute with third-party energy supplier Validus Power prompted this transition. Hence, the merger with USBTC is a strategic move to consolidate and expand operations.
In addition, Hut 8 also formalized a partnership with Foundry Digital, a subsidiary of the Digital Currency Group, in August 2023. The partnership will leverage Hut 8’s Ontario-based data center to support various business offerings.
While this merger marks a significant milestone for both companies, it’s worth noting that all deals of this scale come with risks and uncertainties. However, if all goes according to plan, the newly formed New Hut Corporation is poised to become a significant player in the rapidly evolving landscapes of Bitcoin mining and high-performance computing.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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