Hut 8 and USBTC Merger Gets Green Light From BC Supreme Court
Canadian-based Bitcoin miner Hut 8 is on course to finalize its merger with US Bitcoin (USBTC) after receiving the nod from the Supreme Court of British Columbia.
Back in February 2023, the two companies shared their intention to merge, subject to gaining the necessary approvals from shareholders and regulators. The merger will pave the way for the birth of Hut 8 Corporation, colloquially known as “New Hut,” set to be a publicly traded entity based in the US.
How The Deal Will Look
The partnership promises an impressive addition of 825 megawatts spread over six distinct Bitcoin mining and data center locations, according to the initial disclosures by Hut 8.
Though the Supreme Court has given its final blessing, a few prerequisites still stand in the way of sealing the deal, one of which is the awaited thumbs-up from USBTC shareholders. Yet, Hut 8 remains optimistic, forecasting the deal’s completion before 2023 wraps up.
According the announcement, the merged company will be under the leadership of executives from both Hut 8 and USBTC. Hut 8’s CEO, Jaime Leverton, will continue in her existing role, while USBTC’s CEO, Michael Ho, is set to assume the position of Chief Strategy Officer. Both firms will have equal representation on the board of directors, with five members each.
Hut 8 shareholders will be granted 0.2 shares of the New Hut stock for every share they owned in Hut 8. In a similar arrangement, USBTC shareholders will receive 0.6716 per their existing share, if they agree to the merger.
As a part of its future trajectory, New Hut has aspirations to make its mark on the Nasdaq and Toronto stock exchanges. The shares are set to trade under the ticker symbol $HUT. Existing shareholders are reminded to fill out transmittal letters to get their hands on the New Hut common stock post-merger.
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Hut 8 Recently Moved 6,400 ASIC Miners
Recently, Hut 8 relocated approximately 6,400 ASIC mining rigs from its dormant North Bay site in Ontario to Texas, USA, aiming to cater to the rising demand in AI and high-performance computing.
This move came after operations at the North Bay facility were halted in November 2022, stemming from an unresolved legal dispute with their energy partner, Validus Power, regarding claimed breaches of contractual commitments.
Following news of the greenlight, Hut 8 Mining Corp (HUT) witnessed a 6% surge in its out-of-hours trading.