Bitcoin Miners Hut 8, US Bitcoin Announce Merger
Hut 8 Mining (HUT) and U.S. Bitcoin Corp. (USBTC) have agreed to merge, creating a company with access to approximately 825 megawatts (MW) of energy capacity.
The two companies will be wholly owned subsidiaries of Hut 8 Corp, which was recently formed. According to a press release issued on 7th feb, the two companies’ shareholders will own roughly half of the merged company.
As the bear market has battered miners, the industry has been consolidating, creating acquisition opportunities.
“This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date,” said Hut 8 CEO Jaime Leverton, adding that the firm will be selling a portion of its mined bitcoin to fund operations in the interim period.
Shenif Visram, a colleague of Leverton’s, will be CFO of the new US-based entity. Asher Genoot will be president of USBTC, and Michael Ho will be chief strategy officer. Bill Tai of Hut 8 will serve as chairman.
While the boards of both companies unanimously approved the transaction, equity holders and court approval are still pending.
Hut 8 will provide USBTC with secured bridge financing in the amount of up to $6.5 million, subject to the completion of definitive loan documentation.
While the boards of both companies unanimously approved the transaction, equity holders and court approval are still pending.
(With inputs from Shikha Singh)
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