Crypto mining firms Hut 8 and US Bitcoin plan merger

Published at: Feb. 7, 2023

Canada-based cryptocurrency mining company Hut 8 Mining has announced plans to merge with U.S. Bitcoin to form Hut 8 Corp, or "New Hut".

In a Feb. 7 announcement, Hut 8 said the boards of directors of the two firms had unanimously approved a definitive business combination agreement aimed at combining the mining firms in what will become a United States-based business. Once the deal is finalized, Hut 8 Mining and U.S. Bitcoin, or USBTC, will become subsidiaries of New Hut, with shareholders collectively owning 50% of the new merged firm.

"Bringing together Hut 8's operational track record and diversified revenue streams with US Bitcoin's scalable mining sites, sizeable 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,” said Hut 8 CEO Jaime Leverton.

News: Hut 8 and US Bitcoin Corp have announced a merger of equals, expecting to establish a new Hut 8 as a large-scale publicly traded North American Bitcoin miner with diversified fiat revenue streams. Read more: https://t.co/TL0ZHpkKqu

— Hut 8 (@Hut8Mining) February 7, 2023

Following the merger, the New Hut company will reportedly have access to roughly 825 megawatts across six facilities for crypto mining and other operations. This will include five sites in New York, Texas, and Canada’s Alberta province, with a self-mining capacity of 5.6 exahashes per second (EH/s).

Leverton added:

"This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date [...] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options.”

The merger is still subject to court and regulatory approval by U.S. and Canadian authorities. Hut 8 added that USBTC faced “a legal dispute” with the City of Niagara Falls in New York — many residents have reportedly criticized the mining operations for noise pollution.

WonderFi, another Canada-based crypto firm backed by Shark Tank star Kevin O’Leary, announced in January it was considering a merger with Coinsquare, reportedly aiming to “create a Canadian crypto giant”. In the United States, blockchain firm GammaRey also signed a merger agreement with analytics company GoLogiq, targeting wealth management for younger generations.