The Supreme Court of British Columbia has given the go-ahead for the much-anticipated merger between Canadian Bitcoin mining behemoth Hut 8 and its American counterpart, US Bitcoin (USBTC). Initially announced in February 2023, the merger is set to create a new publicly traded entity, known informally as “New Hut,” with its headquarters in the United States.
The merger is not just a corporate reshuffling; it’s a strategic powerhouse aimed at supercharging Bitcoin mining capabilities. Hut 8 has disclosed plans to ramp up its mining capacity by a staggering 825 MW, distributed across six locations. This move is designed to tap into the skyrocketing demand for Bitcoin mining infrastructure.
While the court’s approval is a significant step forward, the merger still hinges on the consent of USBTC shareholders. If all conditions are met, the deal is expected to close by the end of this year.
Investors note that New Hut’s shares will be listed on the Nasdaq and Toronto stock exchanges under the ticker “HUT.” This opens up a fresh investment frontier, as shareholders can acquire New Hut common stock through transmittal letters.
In a strategic pivot, Hut 8 has relocated 6,400 ASIC mining rigs from its now-defunct North Bay facility in Ontario to Texas. This move aims to cater to the growing needs of the Artificial Intelligence (AI) and High-Performance Computing (HPC) sectors. Last November, the North Bay plant shut down operations due to a legal wrangle with energy provider Validus Power over alleged contract violations.
Adding another feather to its cap, Hut 8 has inked a formal partnership with Foundry Digital, a subsidiary of the Digital Currency Group specializing in institutional mining and staking. This collaboration will leverage Hut 8’s Ontario data center to support specific Foundry business solutions.
With secured court approval and shareholder consent in the pipeline, New Hut is on track to become a dominant force in cryptocurrency mining. The merger is more than just a business deal; it’s a carefully orchestrated strategy to amplify Bitcoin mining capabilities, explore new investment avenues, and forge strategic alliances. The crypto world is keenly watching as the final pieces of this corporate puzzle fall into place.