Hut 8 shares climb as court approves merger with US Bitcoin Corp
Hut 8 stated that the deal was still subject to certain conditions.
The Canadian Supreme Court of British Columbia has approved the merger plans between Canada’s Hut 8 Mining Corp. (Hut 8) and U.S. Data Mining Group, US Bitcoin Corp. (USBTC), according to a Sept. 18 statement.
Following the news, Hut 8 Mining shares increased by nearly 5% to 2.97 Canadian dollars at the time of writing, according to data from Google Finance.
The companies have combined in an all-stock merger of equals to form a new publicly traded U.S. entity, operating under “Hut 8 Corp” or simply “New Hut.” New Hut shares will be listed on the Nasdaq and Toronto Stock Exchanges (TSX) with the ticker “HUT” following the regulators’ approval.
However, despite the court’s approval, the merger is still subject to certain conditions, including “USBTC’s registration statement becoming effective, the approval of USBTC’s stockholders, and other closing conditions customary in transactions of this nature.” If these conditions are met, the deal is expected to be complete by the fourth quarter of this year and ready for public trading.
The merger aims to create a robust and dynamic business, as the two companies are equally one of the largest within the BTC mining space.
Hut 8 Mining has transported 6,400 mining rigs from its previously idle facility in Ontario, Canada, to a new location in Texas, United States. This strategic relocation aligns with the surging demand for artificial intelligence and high-performance computing. Notably, this move occurs amidst an ongoing legal dispute between Hut 8 Mining and their energy provider, Validus Power.
Meanwhile, USBTC announced plans to accommodate 8,500 Bitcoin miners, collectively generating an anticipated hashrate of 820 petahash (PH). These miners are associated with the now insolvent crypto lender Celsius and will be stationed at USBTC’s Alpha Site.