Bitcoin mining firms Hut8 and US Bitcoin announce merger
Hut 8 and U.S. Bitcoin have joined forces to form a new bitcoin mining corporation dubbed Hot 8 Corp., a large-scale publicly listed bitcoin mining corporation with access to 825 MW of electricity.
Hut 8 and U.S. Bitcoin, merger creates New Hut 8
Hut 8, a large innovation-focused cryptocurrency miner with three mining facilities across Canada, has successfully completed an all-stock merger with U.S. Bitcoin Corp., a bitcoin mining firm with four data centers in the United States, to form a new corporation named Hut 8 Corp.
The business combination will give Hut 8 Corp. access to about 825 MW of energy, enabling it to function as a large-scale publicly traded bitcoin mining corporation with robust and diversified revenue streams and best ESG (environmental, social, and governance investing) practices.
Under the business combination agreement, which is subject to both regulatory and court approvals, Bill Tai will function as the chair of the Hut 8 Corporation Board, Jaim Leverton will continue as CEO, Asher Genoot will maintain the role of President, Shenif Vsiram as CFO, while Michael Ho will be the company’s, Chief Strategy Officer.
Repositioned for growth
Due to gloomy market conditions, and high energy costs, Hut 8 mined just 161 BTC in Dec. 2022, its lowest monthly output the entire year. The company also witnessed a significant drop in revenues. However, the firm strongly believes its merger with USBTC will turn its dwindling fortune around for good.
“Combining Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth but also establishes us as a strong, U.S.-based player that is ready and able to seize additional opportunities as they arise.”
Jaime Leverton, CEO of Hut 8 Corp.
Upon completion of the merger, Hut 8 and USBTC will become wholly-owned subsidiaries of Hut 8 Corp. and existing shareholders of both firms will each “collectively own approximately 50% each of the stock of the combined company.”
In related news crypto.news reported last month that Marathon Digital is initiating a multi-million bitcoin mining joint venture with FS Innovation, which will see an initial launch of a 250 MW capacity data center in Abu Dhabi.
At the time of writing, the bitcoin (BTC) price is hovering around $22,947, up by 0.59 percent in the past 24 hours, according to CoinMarktCap.