Hut 8 Mining Corp. and U.S. Bitcoin Corp (USBTC) have merged their operations through an all-stock merger of equals, resulting in the formation of Hut 8 Corp (New Hut), a United States-based Company.
Canadian Bitcoin mining facility Hut 8 Mining Corp announced an all-stock merger with USBTC on November 30. New Hut CEO Jaime Leverton has labeled this the “largest mergers and acquisitions transaction” in cryptocurrency. Leverton presided over Hut 8 Mining in Toronto for over three years before the merger.
By or before December 4, 2023, the merger will lead to the delisting of Hut 8 common equities from the Toronto Stock Exchange and Nasdaq. New Hut common securities, denoted by the “HUT” ticker symbol, will substitute for it.
During the delisting and relisting procedure, each Hut8 share held by a shareholder was exchanged for one New Hut common stock. The President of New Hut, Asher Genoot, disclosed the organization’s strategy for preparing for the forthcoming halving of Bitcoin.
The announcement stated that by consolidating resources, “New Hut gains access to an estimated 825 megawatts (M.W.) of gross energy across six sites that operate self-mining, hosting, and managed service operations.”
The Supreme Court of British Columbia granted Hut8 the final authorization to merge with USBTC in September 2023. Nevertheless, the merger planning procedure was implemented in February 2023.
The merger was pending court and regulatory approval by Canadian and U.S. authorities. Further compounding the legal intricacy, USBTC was embroiled in a “legal dispute” with the City of Niagara Falls in New York regarding residents who had purportedly lodged complaints regarding the noise pollution caused by the mining operations.
The objective of X (formerly Twitter) and Block co-founder Jack Dorsey is to decentralize the Bitcoin mining operation. In contrast, two significant cryptocurrency miners have merged to leverage their resources.
In recent times, Dorsey presided over a $6.2 million seed round for Mummolin, the parent organization of Ocean, a decentralized Bitcoin mining pool. Ocean employs decentralization techniques designed to increase the transparency of the mining process and enable miners to receive block rewards directly from Bitcoin rather than from BTC mining pools.
