Two of the most recent crypto-mining projects, Hut 8 and U.S. Bitcoin, are racing to cash in on Bitcoin’s January rise.
On Wednesday, two companies declared their intention to join, marking the latest transaction in consolidation and balance sheet shifting by hard-hit mining companies still reeling from losses from last year. Hut 8 Corp. would be formed by merging the two companies, and would become a crypto-mining powerhouse.
Hut 8 Announces Merger
Both Hut 8 Mining Corp. and U.S. Data Mining Group have announced today that their respective Boards of Directors have unanimously supported a definitive merger or acquisition accord (the “Business Combination Agreement. US law will govern the new firm, which will be known as Hut 8 Corp. By closing the deal, New Hut will become a publicly listed, large-scale Bitcoin miner dedicated to efficient mining, multiple income streams, and ESG best practices at the forefront of the sector.
Through this transaction, New Hut will likely be able to bolster its financial position and have access to capital-raising options as a large-scale, publicly traded Bitcoin miner. Hut 8 CEO Jamie Leverton claims that the collapse of cryptocurrency exchange FTX and the general volatility of the cryptocurrency industry were not major factors in the plan to merge the two mining firms. Six projects in New York, Texas, and Alberta, Canada, will purportedly provide New Hut with access to about 825 megawatts. When fully operational, its mining output will be 5.6 EH/s.