Crypto mining firms Hut 8 and US Bitcoin plan merger

Canada-based cryptocurrency mining company Hut 8 Mining has announced plans to merge with U.S. Bitcoin to form Hut 8 Corp, or “New Hut”.

In a Feb. 7 announcement, Hut 8 said the boards of directors of the two firms had unanimously approved a definitive business combination agreement aimed at combining the mining firms in what will become a United States-based business. Once the deal is finalized, Hut 8 Mining and U.S. Bitcoin, or USBTC, will become subsidiaries of New Hut, with shareholders collectively owning 50% of the new merged firm.

“Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong, U.S.-based player that is ready and able to seize additional opportunities as they arise,” said Hut 8 CEO Jaime Leverton.

Following the merger, the New Hut company will reportedly have access to roughly 825 megawatts across six facilities for crypto mining and other operations. This will include five sites in New York, Texas, and Canada’s Alberta province, with a self-mining capacity of 5.6 exahashes per second (EH/s).

Leverton added:

“This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date […] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options.”

The merger is still subject to court and regulatory approval by U.S. and Canadian authorities. Hut 8 added that USBTC faced “a legal dispute” with the City of Niagara Falls in New York – many residents have reportedly criticized the mining operations for noise pollution.

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

WonderFi, another Canada-based crypto firm backed by Shark Tank star Kevin O’Leary, announced in January it was considering a merger with Coinsquare, reportedly aiming to “create a Canadian crypto giant”. In the United States, blockchain firm GammaRey also signed a merger agreement with analytics company GoLogiq, targeting wealth management for younger generations.

All Dutch and English crypto news!

Paris Blockchain Week 2023: Second day of the summit kicks off

Paris Blockchain Week (PBW) kicked off its fourth year as one of the world's largest conferences tackling all things blockchain, crypto and Web3. The event...

Aussie crypto exchange hints interest in Hong Kong base, but it’ll depend

Australia-based crypto exchange Independent Reserve is looking at opportunities to set up shop in Hong Kong, as the city continues efforts to become a cryptocurrency...

Coinbase CEO on its Wells Notice: SEC is like soccer referees in a game of pickleball

Brian Armstrong, the CEO and co-founder of crypto exchange Coinbase has compared the Securities and Exchange Commission (SEC) to "soccer refs" in a game of...

CFTC’s tech committee gathered in DC to talk DeFi, here’s what was discussed

The United States commodities regulator has gotten a crash course on decentralized finance (DeFi) today, with crypto executives briefing the regulator on key issues affecting...

Beste exchanges

Koop je crypto bij Bitvavo