Crypto mining companies Hut 8 Mining Corp. and US Bitcoin Corp (USBTC) have decided to merge their operations to establish a new United States-based organization named Hut 8 Corp (New Hut). Canada-based Hut 8 announced the partnership, which CEO Jaime Leverton called one of the largest mergers and acquisitions in the crypto sector, was completed on November 30th. Leverton had served as CEO of Hut 8 for over three years prior to the partnership.
Hut 8 and USBTC Partnership
The said partnership will be finalized with the delisting of Hut 8’s shares from the Toronto Stock Exchange and Nasdaq on or before December 4th. These shares will be replaced by New Hut shares under the HUT symbol.
During the delisting and relisting process, Hut8 investors will own 0.2 shares of New Hut for every Hut 8 share they hold. New Hut’s president Asher Genoot outlined the company’s plan to prepare itself for the upcoming Bitcoin halving event. Genoot stated in the announcement:
“New Hut, by combining resources, will have access to approximately 825 MW of gross energy across six facilities with mining, hosting, and managed service operations.”
Jack Dorsey’s Significant Step Towards Decentralizing the Mining Industry
In September 2022, Hut8 announced that it had received final approval from the Supreme Court of British Columbia for a merger with USBTC, although the planning process began in February. At that time, the merger was subjected to court and regulatory approvals in the US and Canada.
In addition to legal complexities, USBTC was involved in a legal dispute with residents of Niagara Falls City, New York, over noise pollution allegations related to its mining operations. This dispute was resolved on April 7th.
Twitter and Block co-founder Jack Dorsey has recently taken significant steps towards decentralizing Bitcoin mining operations. Dorsey recently led a $6.2 million seed round for Mummolin, the parent company of the new decentralized Bitcoin mining pool Ocean, designed to increase transparency in the mining process and enable miners to receive block rewards directly through Bitcoin instead of through mining pools.
- Merger creates a significant new crypto entity.
- Investors receive New Hut shares post-merger.
- Jack Dorsey invests in mining decentralization.
