May 29, 2024
Hut 8 and USBTC Combine Forces
Latest Cryptocurrency News

Crypto Merger: Hut 8 and USBTC Form New Hut, Realigning the Industry

Hut 8 Mining Corp. and US Bitcoin Corp. (USBTC) have merged their operations through an all-stock deal to establish a new entity based in the United States called Hut 8 Corp. (New Hut). The merger is heralded as the largest mergers and acquisitions transaction in the crypto realm by New Hut CEO Jaime Leverton. It was announced by the Canadian Bitcoin mining facility Hut 8 Mining Corp. on November 30. Leverton, who previously served as Hut 8 Mining CEO in Toronto for more than three years, confirmed that the merger will prompt the delisting of Hut 8 common stocks from both the Toronto Stock Exchange and Nasdaq on or before December 4, 2023.

These will be replaced by New Hut common stocks traded under the ticker symbol ‘HUT.’ For each Hut 8 share held, Hut 8 shareholders received 1 new Hut common stock during the delisting and relisting process.

New Hut’s President, Asher Genoot, outlined the company’s strategy to prepare for the impending bitcoin halving. The amalgamation of resources results in New Hut having access to approximately 825 megawatts (MW) of gross energy across six sites with self-mining, hosting, and managed service operations, according to the announcement.

Hut 8 attained final approval from the Supreme Court of British Columbia to finalize the merger with USBTC in September 2023, following a planning phase that commenced in February 2023. During this period, the merger was contingent upon approval from the courts and regulatory bodies in both the U.S. and Canada. Meanwhile, USBTC was embroiled in a legal dispute with the City of Niagara Falls in New York over allegations from residents about noise pollution stemming from their mining operations.

As two significant crypto miners joined forces to combine their resources, Jack Dorsey, co-founder of X (formerly Twitter) and Block, has been actively working to decentralize Bitcoin mining operations. Dorsey recently spearheaded a $6.2 million seed round for Mummolin, the parent company of Ocean, a new decentralized Bitcoin mining pool. Ocean aims to offer increased transparency in the mining process and empower miners to receive block rewards directly from Bitcoin rather than through BTC mining pools.

Image by freepik

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