April 19, 2024
Hut 8 gains final approval for its merger with US-based USBTC.
Bitcoin News

Hut 8 Moves Closer to Merger with USBTC Following Supreme Court Approval

Canadian Bitcoin mining company Hut 8 is on track to complete its planned merger with US-based Bitcoin firm USBTC, following final approval from the Supreme Court of British Columbia.

In February 2023, Hut 8 and USBTC revealed their intention to merge, contingent on approval from shareholders and regulatory bodies. Upon completion, this merger will result in the establishment of Hut 8 Corporation, referred to as New Hut, which will transition into a publicly traded US-based enterprise.

Initially, Hut 8 announced that this merger would unlock 825 megawatts of capacity through six distinct Bitcoin mining and data center facilities.

While the Supreme Court of British Columbia has granted the final order authorizing the merger, the closing of the agreement hinges on several outstanding conditions, including the endorsement of USBTC shareholders.

Hut 8 anticipates that the conclusive transaction formalizing the merger and the birth of New Hut will occur before the conclusion of 2023. New Hut also intends to list its shares on both the Nasdaq and Toronto stock exchanges, trading under the ticker symbol $HUT. Shareholders will need to finalize and submit transmittal letters to receive shares of New Hut common stock once the merger reaches completion.

Hut 8 recently relocated approximately 6,400 ASIC mining rigs from its dormant North Bay facility in Ontario to the state of Texas in the United States, driven by the aim of meeting rising demand for artificial intelligence (AI) and high-performance computing.

This hardware transfer became essential primarily due to an ongoing legal dispute between Hut 8 and Validus Power, a third-party energy supplier, over alleged contractual breaches. Operations at the mining facility have remained suspended since November 2022.

In August 2023, Digital Currency Group’s institutional mining and staking subsidiary, Foundry Digital, formally announced a partnership with Hut 8. Under this arrangement, Hut 8 will provide support for several business offerings by Foundry, leveraging its data center in Ontario. Foundry has been utilizing Hut 8’s infrastructure to support its cryptocurrency mining pool since 2020.

Image by pixabay

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