Canadian Bitcoin mining company Hut 8 is nearing the completion of its planned merger with US Bitcoin (USBTC) after receiving final approval from the Supreme Court of British Columbia. The merger, first announced in February 2023, is subject to shareholder and regulatory approval. Once finalized, the merger will result in the formation of Hut 8 Corporation, or “New Hut,” which will become a publicly traded US-based business.
The merger between Hut 8 and USBTC will unlock 825 megawatts of capacity across six Bitcoin mining and data center facilities. This will significantly expand the operational capabilities of both companies and allow them to take advantage of the growing demand for Bitcoin mining.
While the Supreme Court of British Columbia has granted final approval for the merger, there are still some outstanding requirements that need to be met before the deal can be closed. One of these requirements is the approval of USBTC shareholders. Hut 8 expects that all the necessary conditions for the transaction to be completed and for New Hut to be created will be met by the end of 2023.
In addition to the merger, New Hut plans to list its shares on both the Nasdaq and Toronto stock exchanges under the ticker symbol HUT. Shareholders will also need to complete and submit transmittal letters in order to receive shares of New Hut common stock once the merger is finalized.
To meet the growing demand for artificial intelligence (AI) and high-performance computing, Hut 8 recently relocated 6,400 ASIC mining rigs from its inactive facility in Ontario to Texas. This move was prompted by an ongoing legal dispute between Hut 8 and energy supplier Validus Power, which led to the suspension of operations at the Ontario facility. The relocation of the mining rigs will allow Hut 8 to better serve its customers and support the development of AI technologies.
Furthermore, Hut 8 has entered into a formal partnership with Digital Currency Group’s subsidiary, Foundry Digital. The partnership will see Hut 8 supporting various business offerings for Foundry using its Ontario-based data center. Foundry has been utilizing Hut 8’s infrastructure for its cryptocurrency mining pool since 2020, and this collaboration will further strengthen their relationship.
The approval of the merger by the Supreme Court of British Columbia marks an important milestone for Hut 8 and USBTC. The creation of New Hut will allow both companies to leverage their combined resources and expand their market presence. By listing on major stock exchanges, Hut 8 aims to attract more investors and increase its visibility in the cryptocurrency industry.
As the crypto space continues to evolve, Hut 8’s merger with USBTC and its partnership with Foundry Digital demonstrate the company’s commitment to innovation and growth. With the completion of the merger and the establishment of New Hut, Hut 8 is well-positioned to capitalize on the increasing demand for Bitcoin mining and related services.
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