spot_img
spot_img
spot_img
spot_img
ThecoinrepublicCryptoThe Merger of Hut 8 and US...
google-news-img

Trending

Hamster

Hamster

notco

Notcoin

mogutou

Mogutou

Premium Partners

immerion
spot_img

The Merger of Hut 8 and US Bitcoin Corp will be “Hut 8 Corp”

spot_img
  • Top shareholders will have equal authority over Hut 8 Corp
  • The new entity will have access to combined power of 825 megawatts (MW)

The crypto winter lasted for about a year and its aftereffects are still felt. Although it made the journey tough for many cryptocurrencies and crypto firms, the industry made it to 2023. Several cryptocurrency firms collapsed. Bankruptcies were being reported almost regularly throughout 2022. Many of those who managed to survive had holes in their balance sheet. Companies in the crypto mining industry also struggled and took different measures to stay firm. Several mining companies sold their Bitcoin holdings or merged with other companies to survive. Prominent Bitcoin miner Hut 8 recently reported its merger with US Bitcoin Corp (USBTC).

A January 7 press release noted that the companies’ Board of Directors “have unanimously approved a definitive business combination agreement under which the companies will combine in an all-stock merger of equals.” this mean that shareholders of both companies will have 50% ownership of the newly formed entity.

According to the release, the new entity formed after the merger of Hut 8 and US Bitcoin Corp will be recognized as a US company and will be dubbed “Hut 8 Corp.” Following the deal, “New Hut” is likely to be established as a “large scale, publicly traded Bitcoin miner” while focusing on “economic mining, highly diversified revenue streams, and industry-leading best practices in ESG.”

With the merger, the combined strength of both companies is expected to give the newly formed entity unprecedented advantages. Approximately 825 Megawatts will be available for New Hut to access for self-mining, hosting and managing infrastructure operations. Hut 8 Corp will also have 5.6 exa hash/sec (EH/s) of installed self-mining capacity. 

Hut 8 CEO Jaime Leverton stated, “Our established track record of creating shareholder value through organic growth and strategic acquisitions while maintaining a balance sheet-first approach has positioned us perfectly to advance our growth trajectory through this business combination.”

The CEO added that the mining firm would sell some of the bitcoin from its mined bitcoin holdings and allocate the funds to the operations in the interim period. 

Additionally, the provision of 6.5 million USD worth of secured bridge financing from Hut 8 to USBTC is awaiting the completion of definitive loan documents.

Despite the crypto mining industry’s vulnerable condition, Hut 8 was among very few companies that continued operations. By the end of 2022, Hut 8’s bitcoin stash held about 9,086 BTC which was worth 209 million USD at the current price (press time).

Notably, the stock price of Hut 8 Mining (HUT) tumbled and witnessed a drop of over 8% in the last trading session. The company is listed on the Toronto Stock Exchange (TSE) and is among the actively traded stocks.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

Our Newsletter

Subscribe to our newsletter to get the latest news and promotions.

Ahtesham Anis
Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.
spot_img
spot_img

Related News

Michael Saylor
Maxwell Mutuma

Michael Saylor Rallies Bitcoin Believers with Moon Tweet

Crypto
Kelvin Munene
Nigerian
Kelvin Munene
Trump
Maxwell Mutuma

Donald Trump Considers Dimon for Treasury Amid Crypto Shift

Charles Hoskinson
Maxwell Mutuma

Charles Hoskinson Suggests ID Solution for X Hacks

Ethereum
Maxwell Mutuma

Ethereum ICO Veterans Resurface Pre-ETF Approval

spot_img