Canadian Bitcoin mining company Hut 8 will complete its planned merger with U.S. Bitcoin (USBTC) following final approval from the Supreme Court of British Columbia.
Hut8 and USBTC announced the move in February 2023, which is subject to shareholder and regulatory approval. After this merger, Hut 8 and USBTC formed Hut 8 Corporation, or “New Hut”, which will become a company listed in the United States.
Hut 8’s initial announcement highlighted that the merger would open up 825 megawatts of capacity across six different Bitcoin mining and data center facilities.
While the Supreme Court of British Columbia has issued a final order approving the merger, completion of the transaction is still subject to a number of outstanding requirements, including USBTC shareholder approval.
Hut 8 expects the final transaction confirming the merger and creating New Hut to be completed by the end of 2023.
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New Hut also plans to list on the Nasdaq and Toronot stock exchanges under the ticker $HUT. After the merger is completed, shareholders will also need to complete and submit a letter of transmittal in order to receive shares of New Hut common stock.
Hut 8 recently moved approximately 6,400 ASIC mining rigs from its idle North Bay facility in Ontario to Texas, US, as it looks to meet growing demand for artificial intelligence (AI) and high-performance computing.
The redeployment of hardware from the site is largely due to an ongoing legal dispute between Hut 8 and third-party energy supplier Validus Power over alleged failure to meet contractual obligations. The mining facility has suspended operations since November 2022.
Digital Currency Group’s institutional mining and staking subsidiary Foundry Digital also Announce Establish a formal partnership with Hut 8 in August 2023. Under the agreement, Hut 8 will use its data center in Ontario to provide multiple business support to Foundry. Foundry has been using Hut 8 infrastructure to support its cryptocurrency mining pool since 2020.
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