- The Canadian-based mining company, Hut 8 merges with U.S bitcoin
- The two firms have a big plan in mind
- Hut 8 planning to leverage the advantages both firms provide for the new company.
A merger between two mining firms, U.S. bitcoin and Hut 8, will bring forth the innovation of a crypto company. New Hut will still be subject to regulatory rules and approvals by the U.S. and Canadian authorities.
The Canadian-based mining company, Hut 8 announced their intent to merge with U.S. bitcoin towards forming Hut 8 Corp or “New Hut.”
The board of directors of both firms unanimously approved a definitive business combination agreement to merge the mining firms into what will eventually become a United States-based business.
After the deal is finalized, Hut 8 and U.S. Bitcoin or USBTC will become New subsidiaries. The company’s shareholders collectively own 50% of the newly emerged firm, New Hut.
Viewing the operational track record of Hut 8 and their diversified revenue streams with U.S. Bitcoins’s scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations will not only help accelerate the diversified strategy and will also position them for near-term growth.
It’ll also help establish the new company as a robust and U.S.-based player that can readily seize opportunities once they arise.
In line with the merger, New Hut company will have access to roughly 825 megawatts across six facilities for the mining of crypto and other included operations, which will consist of five sites in New York, Canada’s Alberta province, and Texas, alongside a self mining capacity of 5.6 exahashes per second.
The CEO of Hut 8, Jaime Leverton, added that the transaction between the two firms had provided Hut 8 with the opportunity to leverage the significant, unencumbered Bitcoin stack that the firm has Hodled to date. And during the interim period of the transaction, Hut 8 plans to cover its operating costs by selling the bitcoin they mine, selling from their stack, or exploring various loan options.
However, both companies have acknowledged that the merger is still subject to court and regulatory approval by the U.S. and Canadian authorities. Hut 8 also alluded to the fact that USBTC faced a legal dispute with the city of Niagara Falls in New York, and several residents have also reported against the company’s mining operations for noise pollution.
Conclusion
Hut 8 and U.S. bitcoin are not the only crypto firms considering a merger with WonderFi. However, another Canadian-based crypto firm backed up by Shark Tank star Kevin O’Leary also announced their intention to consider a merger with Coinsquare, a collaboration aimed at creating a Canadian cryptocurrency giant for the crypto space.
While in the U.S., a blockchain firm GammaRay also signed a merger with an analytics firm, Gologiq, intending to target wealth management for a younger demographic. The existence of these mergers will do an excellent service for the crypto space in the long run.
