Canadian Bitcoin mining company Hut 8 will complete its proposed merger with US Bitcoin (USBTC) following final approval from the Supreme Court of British Columbia.
Hut8 and USBTC announced the move in February 2023, which is subject to shareholder and regulatory approval. By merging, Hut 8 and USBTC will form Hut 8 Corporation or “New Hut,” which will become a publicly traded company based in the United States.
An initial announcement from Hut 8 highlighted that the merger would open 825 megawatts of capacity across six different Bitcoin (BTC) mining and data center facilities.
Although the Supreme Court of British Columbia has issued a final order approving the merger, completion of the transaction is subject to a handful of outstanding requirements, including USBTC shareholder approval.
Hut 8 understands that the final transaction confirming the merger and formation of New Hut is expected to take place before the end of 2023.
Related: Hut 8 CEO comments on bull and bear markets from a mining perspective
New Hut also plans to list its shares on the Nasdaq and Toronto stock exchanges under the ticker symbol HUT. Shareholders will also be required to complete and submit letters of transmittal to receive shares of New Hut common stock once the merger is completed.
Hut 8 recently moved around 6,400 ASIC mining rigs from its inactive North Bay site in Ontario to the US state of Texas to meet increased demand for artificial intelligence (AI) and high-performance computing.
The relocation of the hardware from the site was primarily necessary due to an ongoing legal dispute between Hut 8 and third-party energy supplier Validus Power over alleged failure to fulfill contractual obligations. Operations at the mining facility have been suspended since November 2022.
Also, Digital Currency Group’s institutional mining and staking subsidiary, Foundry Digital announced a formal partnership with Hut 8 in August 2023. The deal will see Hut 8 support multiple business offerings for Foundry through its Ontario-based data center. Foundry has been using Hut 8’s infrastructure to support its cryptocurrency mining pool since 2020.
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