On November 30, two major players in the Bitcoin mining industry, Hut 8 Mining Corp. and US Bitcoin Corp (USBTC), announced their merger to create a new entity known as Hut 8 Corp or New Hut. This merger comes just months before the highly anticipated Bitcoin halving event in 2024.
The merger brings together a total of 825 MW of energy across 11 sites, focusing on Bitcoin mining, hosting, managed services, and high-performance computing. With this merger, Hut 8 Corp is set to become the largest publicly traded Bitcoin miner in the world based on hash rate.
Strategic Positioning for Continued Growth
The merger between Hut 8 and USBTC is strategically positioned to prepare for the upcoming Bitcoin halving event projected to take place in April 2024. “New Hut is laser-focused on driving efficiency and improvement across our spectrum of operations to ensure that we are well positioned and uniquely nimble as we approach the halving and beyond,” stated New Hut President Asher Genoot.
The halving event occurs every four years and results in a significant cut in the block reward for Bitcoin miners. By merging, the newly formed Hut 8 Corp aims to leverage economies of scale and operational expertise to tackle the impending challenges brought by the halving.
“The combined strengths will allow New Hut 8 Corp to stay resilient despite the impending challenges of the Bitcoin halving,” said New Hut CEO Jaime Leverton.
Even as they navigate through the halving, Hut 8 Corp is not planning to stop at the merger. The company intends to continue expanding and has a pipeline of greenfield and brownfield growth opportunities in mind.
Moving Forward
Effective December 4, Hut 8 Corp will trade under the new ticker symbol HUT on the Nasdaq stock exchange and the Toronto Stock Exchange. As part of the merger terms, shareholders of legacy Hut 8 Mining will receive 0.2 shares of New Hut common stock for each Hut 8 share they hold. Meanwhile, USBTC shareholders will receive 0.6716 shares of the new stock for each of their previous shares.
This merger marks a new chapter for the two leading Bitcoin mining companies as they join forces and rebrand as a U.S.-based entity. Having aligned strategically ahead of the halving, Hut 8 Corp aims to strengthen its position in the Bitcoin mining space and continue to thrive.
