Two BTC miners intend to merge into one company

  • Elena Klimovich
  • 19:30 Feb 08, 2023
  • 258
Two BTC miners intend to merge into one company

It became known about the intentions of Hut 8 to merge with US Bitcoin on a parity basis to create a new company Hut 8 Corp. The newly created entity will be based in the United States.

Hut 8 Corp. will reach a hash rate of 5.6 Eh/s, and the six facilities will have a capacity of 825 mW. US Bitcoin CEO Michael Ho appreciates the prospect of the new venture:

We intend to become the leading operator in the cryptocurrency mining market. We were motivated to merge by Hut 8's reputation, as well as the company's impeccable financial management strategy and ability to diversify revenues. We can safely say that we have a common path to realize the mission of the new company. 

For now, the process is pending regulatory and shareholder approval. The plan is for all stages of the transaction to be completed by the end of Q2. Under the preliminary agreement, US Bitcoin will receive $6-6.5 million in funding from its partner from accumulated BTC reserves. 

Hut 8 is now listed on the Toronto Stock Exchange and Nasdaq. Approval is needed for the new company's stock to also trade on the floors. After the exchange of securities, under the terms of the agreement, the shareholders of the merging companies will receive a joint share of 50% in the new structure.

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