Bitcoin Miners Hut 8 and USBTC Complete Merger, Forming New Hut 8 Corp for Upcoming Halving
On November 30 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. The news comes just months before the highly anticipated Bitcoin halving event in 2024.
The merger brings together the 825 MW of energy across 11 sites focused on Bitcoin mining, hosting, managed services, and high-performance computing.
Strategic Positioning for the Impending Bitcoin Halving
According to New Hut CEO Jaime Leverton, the combination creates the largest publicly traded Bitcoin miner in the world based on hash rate.
With the upcoming Bitcoin halving projected to take place in April 2024, the merger is intended to strategically position the newly formed Hut 8 Corp for continued growth and efficiency gains. The halving event, which happens every four years, will cut the block reward for Bitcoin miners in half overnight.
“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,” New Hut President Asher Genoot said in the announcement.
The merger allows the company to leverage economies of scale and operational expertise ahead of the major drop in revenue miners will face after the halving.
According to Leverton, the combined strengths will allow New Hut 8 Corp to stay resilient despite the impending challenges of the Bitcoin halving. The company seeks to continue expanding, with a pipeline of greenfield and brownfield growth opportunities.
Trading Under New Stock Symbols
Effective December 4, the shares of Hut 8 Corp will begin trading under the new ticker symbol HUT on the Nasdaq stock exchange and the Toronto Stock Exchange. The merger terms dictate that shareholders of legacy Hut 8 Mining will receive 0.2 shares of New Hut common stock for each Hut 8 share. Meanwhile, USBTC shareholders will get 0.6716 shares of the new stock for each of their previous shares.
The completion of the merger marks a new chapter for the two leading Bitcoin mining companies, as they join forces and rebrand as a U.S.-based entity. Their strategic alignment ahead of the halving seeks to strengthen their position in the Bitcoin mining space.