Cryptocurrency News

Hut 8 receives greenlight from Canadian Supreme Court for USBTC merger



8b624c38 d24a 4a1d bde4 775713b3be42

Canadian Bitcoin mining firm Hut 8 is set to wrap up its planned merger with US Bitcoin (USBTC) following final approval from the Supreme Court of British Columbia.

Hut8 and USBTC had announced the move in February 2023 which was subject to shareholder and regulatory approval. The merger will see Hut 8 and USBTC form Hut 8 Corporation, or “New Hut”, which will become a publicly traded United States-based business.

An initial announcement from Hut 8 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, the closing of the deal is subject to a handful of outstanding requirements, including the approval of USBTC shareholders.

Hut 8 anticipates that the final transaction confirming the merger and creation of New Hut is expected to take place before the end of 2023.

Related: Hut 8 CEO weighs in on the bull and bear markets from a mining perspective

New Hut also plans to list its shares on both the Nasdaq and Toronot stock exchanges, trading under the ticker $HUT. Shareholders will also need to complete and submit transmittal letters in order to receive shares of New Hut common stock once the merger is complete.

Hut 8 recently moved some 6,400 ASIC mining rigs from its inactive North Bay facility in Ontario to the U.S state of Texas as it looks to serve increased demand for artificial intelligence (AI) and high-performance computing.

The redeployment of hardware from the site was largely necessitated by an ongoing legal dispute between Hut 8 and third-party energy supplier Validus Power over alleged failure to meet contractual obligations. Operations at the mining facility have been suspended since November 2022.

Digital Currency Group’s institutional mining and staking subsidiary Foundry Digital also announced a formal partnership with Hut 8 in August 2023. The deal will see Hut 8 support a number of business offerings for Foundry using its Ontario-based data centre. Foundry has been using Hut 8 infrastructure to support its cryptocurrency mining pool since 2020.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines