Bitcoin Miners Hut 8, US Bitcoin Corp. Announce Merger
Bitcoin mining firms Hut 8 Mining (HUT) and U.S. Bitcoin Corp. (USBTC) agreed to merge, forming a company with access to about 825 megawatts (MW) of energy capacity.
The two firms will be wholly owned subsidiaries of the newly formed Hut 8 Corp. Shareholders of the two will each own about 50% of the merged company, they said in a Tuesday press release.
The industry has been consolidating as the bear market has battered miners, leading to acquisition opportunities.
"This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date," said Hut 8 CEO Jaime Leverton, adding that the firm will be selling a portion of its mined bitcoin to fund operations in the interim period.
Leverton will lead the new U.S.-based entity and her colleague Shenif Visram will be CFO. From USBTC, Asher Genoot will be president and Michael Ho chief strategy officer. Hut 8's Bill Tai will be chairman.
Hut 8 will provide secured bridge financing of as much as $6.5 million to USBTC, subject to the completion of definitive loan documentation.
While the boards of the two firms have both unanimously approved the deal, equity holders and court approval are still pending.
UPDATE (Feb. 7, 12:26 UTC): Adds leadership, financing starting in fifth paragraph.