Hut 8 receives final approval to merge with USBTC

How does Bitcoin mining work?
How does Bitcoin mining work?

Supreme Court British Columbia has granted Hut 8 Mining the final approval required to merge with US Bitcoin (USBTC) mining company. This is stated in the press release.

The firm received approval from Canada’s Competition Bureau in March.

According to the terms of the agreement, the miners will unite as a result of a merger of shares. The new structure, called Hut 8 Corp, will be based in the USA and will have a hashrate of 5.6 EH/s with access to 825 MW of capacity across six sites. The firm first announced these plans in February.

Closing of the transaction is subject to “certain conditions, including the effectiveness of USBTC’s registration statement, shareholder approval and other factors,” Hut 8 representatives said.

The merger is expected to close in the fourth quarter of 2023. New Hut intends to list shares on Nasdaq and the Toronto Stock Exchange under the ticker symbol HUT.

Previously, as part of the agreements, Hut 8 agreed to provide the partner with bridge financing in the range of $6-6.5 million for the transition period. The company’s CEO, Jamie Leverton, clarified that accumulated reserves in Bitcoin are used for these purposes.

In premarket trading, the mining company’s securities traded at $2.21, up 5.24%.

Data: MarketWatch.

Let us remember that in June Hut 8 agreed with Coinbase to open a credit line for $50 million secured by bitcoins. Leverton then said that the funds would “provide additional financial flexibility” during the halving period of the first cryptocurrency network.

In July, the miner announced new contracts to provide services in the field of high-performance computing, including the artificial intelligence industry.

Previously, ForkLog published material with the main indicators of mining companies for August

Found an error in the text? Select it and press CTRL+ENTER

ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!

Leave a Reply