Bitcoin mining company Hut 8 is preparing to finalize its planned merger with US Bitcoin following approval from the British Columbia Supreme Court. This merger will transform both companies into publicly traded entities based in the United States and will be named “New Hut.” The merger will not only result in a financial exchange but will also significantly increase the technical capacity, bringing an 825-megawatt capacity expansion across six different Bitcoin mining and data center facilities.
Partnership to be Completed by the End of 2023
Hut 8 and USBTC announced this step, which has passed shareholder and regulatory approval, in February 2023. After the completion of the merger, Hut 8 and USBTC will become publicly traded companies based in the United States and will be known as Hut 8 Corporation or New Hut. The initial announcement by Hut 8 emphasized the 825-megawatt capacity increase in six different Bitcoin mining and data center facilities resulting from the partnership.
While the British Columbia Supreme Court has issued a final decision approving this partnership, the completion of the agreement is subject to a series of approvals, including the consent of USBTC shareholders. Hut 8 expects the final transaction approving the establishment of New Hut to take place before the end of 2023.
What are the Plans for the New Company?
New Hut plans to list its shares on both Nasdaq and the Toronto Stock Exchange under the ticker symbol $HUT after this move. Shareholders will need to fill out and submit transmission forms to be able to acquire New Hut shares once the merger is completed, and the necessary procedures will commence accordingly. Hut 8 recently relocated approximately 6,400 ASIC mining equipment from its idle North Bay facility in Ontario to the state of Texas in the United States. With this move, the company will cater to the increasing demand for artificial intelligence and high-performance computing.
Digital Currency Group’s institutional mining and staking subsidiary, Foundry Digital, also announced its official partnership with Hut 8 in August 2023. According to the agreement, Hut 8 will support a series of job offers for Foundry using its Ontario-based data center. Since 2020, Foundry has been utilizing Hut 8’s infrastructure to support its cryptocurrency mining pool.
