Hut 8 and US Bitcoin (USBTC), two cryptocurrency mining companies, have merged in an all-stock transaction, creating a new company known as Hut 8 Corp. or New Hut. In exchange for their Hut 8 shares, stockholders will get 0.20 shares of New Hut stock. On the other hand, the USBTC stockholders will keep 0.6716 per share. After the transaction is finalised in the second quarter of 2023, each company will hold 50% of Hut 8 Corp.
What Hut 8 Corp seeks to achieve with the merger
New Hut says that as a result of the merger, it will become a prominent ASIC repair and sales hub in addition to being an exceptional self-mining operator, hosting provider, strategic operator of managed infrastructure and supplier of high-performance infrastructure. Also, the two companies believe that the merger will accelerate their diverse approach and put them on the right trajectory to achieve near-term growth. In addition, they say that it will establish them as a powerful, US-based player that is prepared to grasp new opportunities when they arise.
The new company not only adheres to “economical mining” principles but also generates income from a wide variety of sources while maintaining ESG compliance. Chief Executive Officer Jaime Leverton will continue to lead Hut 8 Corp in her current capacity. Meanwhile, CEO Michael Ho of USBTC will be New Hut’s chief strategic officer. Each company will have five representatives on the board of directors.
New Hut’s goal is to seize unrealised value in the industry by making the most of available opportunities. As a result of the consolidation, the merged companies will have access to 825 MW of gross energy across six locations, four of which are in the United States. Hut 8 has also agreed to provide USBTC with secured bridge financing of $6 million to $6.5 million for the interim period as part of the agreement.