Crypto mining companies Hut 8 and US Bitcoin are planning a merger

by · February 9, 2023

Canada-based cryptocurrency mining company Hut 8 Mining has announced plans to merge with US Bitcoin to form Hut 8 Corp, or “New Hut.”

In an announcement on February 7, Hut 8 said the boards of the two firms had unanimously approved a definitive agreement to merge the mining companies into what will become a US-based operation. Once the deal is completed, Hut 8 Mining and US Bitcoin, or USBTC, will become subsidiaries of New Hut, with shareholders collectively owning 50% of the newly merged firm.

“Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, significant hosting operations and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong, US-based player who are ready and able to seize more opportunities as they arise,” said Hut 8 CEO Jaime Leverton.

After the merger, the New Hut company will have access to approximately 825 megawatts across six facilities for crypto mining and other operations. This will include five locations in New York, Texas and Canada’s Alberta province, with a self-mining capacity of 5.6 exahashes per second (EH/s).

Leverton added:

“This transaction has given us the opportunity to leverage the significant unencumbered Bitcoin stack we have HODLed to date […] In the interim, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options.”

The merger is still subject to court and regulatory approval from the US and Canadian authorities. Hut 8 added that the USBTC was facing “a legal dispute” with the City of Niagara Falls in New York – many residents have reportedly criticized the mining operation for noise pollution.

Related: Bitcoin miner Hut 8 takes Ontario power supplier to court

WonderFi, another Canada-based crypto firm backed by Hai tank star Kevin O’Leary, announced in January that it was considering a merger with Coinsquare, reportedly with the aim of “creating a Canadian crypto giant.” In the US, blockchain firm GammaRey also signed a merger agreement with analytics company GoLogiq, aimed at wealth management for younger generations.