- Hut 8 has received final approval from the Supreme Court of British Columbia for its planned merger with US Bitcoin (USBTC).
- The merger will create a new publicly traded entity called Hut 8 Corporation, combining resources and opening up 825 megawatts of capacity across six Bitcoin mining and data center facilities.
- The New Hut Shares will be traded under the Hut ticker on the Nasdaq and Toronto stock exchanges.
Following the latest approval from the Supreme Court of British Columbia, Canadian Bitcoin mining startup Hut8 is expected to complete its planned merger with US Bitcoin (USBTC).
Hut8 and USBTC first announced the move in February 2023, pending shareholder and regulatory approval. Per the merger, Hut 8 and USBTC will merge to establish Hut 8 Corporation, or “New Hut,” which will become a publicly traded company in the United States.
Hut 8 initially stated that the combination would create 825 megawatts of capacity across six distinct Bitcoin (BTC) mining and data center facilities.
While the Supreme Court of British Columbia has issued a final decision authorizing the merger, the transaction is still subject to a few conditions, including USBTC shareholder approval.
Hut8 expects the complete transaction confirming the merger and formation of New Hut to occur before the end of 2023.
New Hut also intends to launch its stock on the Nasdaq and Toronto stock exchanges, where it will trade under the ticker HUT. To receive New Hut common stock shares once the transaction is completed, shareholders must additionally complete and submit transmittal letters.
Hut8 has taken a proactive approach to scaling its business operations. The company recently relocated 6,400 ASIC mining rigs from its decommissioned North Bay site in Ontario to Texas in order to meet the rising demand for artificial intelligence (AI) and high-performance computing (HPC).
The hardware was redeployed due to an ongoing legal dispute between Hut 8 and third-party energy supplier Validus Power over an alleged failure to meet contractual commitments. The mining facility’s operations have been halted since November 2022.
Foundry Digital, Digital Currency Group’s institutional mining and staking company, also announced formal cooperation with Hut 8 in August 2023. Hut 8 will use its Ontario-based data center to provide multiple commercial solutions for Foundry. Foundry has been using Hut 8 infrastructure to power its crypto mining pool.
The merging of Hut8 and USBTC is a huge step forward in cryptocurrency mining. With court permission in hand and shareholder approval forthcoming, the new firm, New Hut, is positioned to become a market leader. The combination intends to improve Bitcoin mining capacity and provide new investment options while managing regulatory obstacles and forging strategic alliances. The closing transaction is highly anticipated since it will result in a carefully designed corporate strategy.