Crypto mining firms Hut 8 and US Bitcoin plan merger

Canada-based cryptocurrency mining institution Hut 8 Mining has announced plans to merge with U.S. Bitcoin to signifier Hut 8 Corp, oregon "New Hut".

In a Feb. 7 announcement, Hut 8 said the boards of directors of the 2 firms had unanimously approved a definitive concern operation statement aimed astatine combining the mining firms successful what volition go a United States-based business. Once the woody is finalized, Hut 8 Mining and U.S. Bitcoin, oregon USBTC, volition go subsidiaries of New Hut, with shareholders collectively owning 50% of the caller merged firm.

"Bringing unneurotic Hut 8's operational way grounds and diversified gross streams with US Bitcoin's scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not lone accelerates our diversified strategy and positions america for near-term growth, but besides establishes america arsenic a strong, U.S.-based subordinate that is acceptable and capable to prehend further opportunities arsenic they arise,” said Hut 8 CEO Jaime Leverton.

News: Hut 8 and US Bitcoin Corp person announced a merger of equals, expecting to found a caller Hut 8 arsenic a large-scale publically traded North American Bitcoin miner with diversified fiat gross streams. Read more: https://t.co/TL0ZHpkKqu

— Hut 8 (@Hut8Mining) February 7, 2023

Following the merger, the New Hut institution volition reportedly person entree to astir 825 megawatts crossed six facilities for crypto mining and different operations. This volition see 5 sites successful New York, Texas, and Canada’s Alberta province, with a self-mining capableness of 5.6 exahashes per 2nd (EH/s).

Leverton added:

"This Transaction has fixed america the accidental to leverage the significant, unencumbered Bitcoin stack we person HODLed to day [...] During the interim period, we program to screen our operating costs done a operation of selling the Bitcoin we mine, selling from our stack and/or exploring assorted indebtedness options.”

The merger is inactive taxable to tribunal and regulatory support by U.S. and Canadian authorities. Hut 8 added that USBTC faced “a ineligible dispute” with the City of Niagara Falls successful New York — galore residents person reportedly criticized the mining operations for sound pollution.

Related: Bitcoin miner Hut 8 takes stoush with Ontario powerfulness supplier to court

WonderFi, different Canada-based crypto steadfast backed by Shark Tank star Kevin O’Leary, announced successful January it was considering a merger with Coinsquare, reportedly aiming to “create a Canadian crypto giant”. In the United States, blockchain steadfast GammaRey besides signed a merger agreement with analytics institution GoLogiq, targeting wealthiness absorption for younger generations.