Canadian Bitcoin mining company Hut 8 is on the verge of finalizing its merger with US Bitcoin (USBTC) after receiving approval from the Supreme Court of British Columbia. The merger will create a new entity, “New Hut,” that will have a substantial impact on Bitcoin mining and high-performance computing.
The merger, announced in February 2023, required various levels of approval, including from shareholders and regulatory bodies. The goal is to establish a publicly traded entity based in the US, with an ambitious plan to utilize an 825-megawatt capacity across six Bitcoin mining and data center facilities.
However, the merger is not yet complete, as it still requires approval from USBTC shareholders. Hut 8 anticipates finalizing the transaction before the end of 2023.
The new corporation aims to list its shares on the Nasdaq and Toronto stock exchanges under the ticker symbol “HUT.” Shareholders will need to complete the necessary paperwork to receive New Hut common stock once the merger is finalized.
Hut 8 has been making strategic moves, including relocating 6,400 ASIC mining rigs from an inactive facility in Ontario to Texas due to a legal dispute with Validus Power, a third-party energy supplier. The merger with USBTC is part of Hut 8’s strategy to consolidate and expand its operations.
Furthermore, Hut 8 entered into a partnership with Foundry Digital, a subsidiary of the Digital Currency Group, in August 2023. This partnership will leverage Hut 8’s data center in Ontario to support various business offerings.
While this merger represents a significant milestone for both companies, it is important to acknowledge that deals of this magnitude come with inherent risks and uncertainties. However, if everything goes according to plan, the newly formed New Hut Corporation is poised to become a major player in the rapidly evolving fields of Bitcoin mining and high-performance computing.