- Hut 8 to merge with US Bitcoin to diversify revenue streams.
- Combined company’s mining capacity will reach 5.6 EH/s.
- Hut 8 Mining Corp stock closed slightly lower on Wednesday.
Hut 8 Mining Corp finished slightly in the red Wednesday after announcing a planned merger with US Bitcoin Corp.
What’s in it for the two companies?
The merger is intended to diversify revenue sources and reduce mining-related costs. It will create a larger publicly listed company operating under the name Hut 8 Corp.
Both boards have unanimously approved the agreement. In the press release, Jaime Leverton, who will continue to lead the merged company, said:
Bringing together Hut 8 and US Bitcoin accelerates our diversified strategy, positions us for near-term growth, and establishes us as a strong player that’s ready and able to seize additional opportunities as they rise.
This year, the Canadian digital-asset miner’s stock has gained more than 150%.
Hut 8 to see a boost to mining potential
Bill Tai will remain Chairman of the Board, and Asher Ganoot will continue as President of the combined company. The announcement also named Michael Ho as Chief Strategy Officer and Shenif Visram as Chief Financial Officer.
The new Hut 8 Corp will oversee 680 MW of infrastructure and is expected to increase mining capacity to 5.6 EH/s. Michael Ho, co-founder of US Bitcoin, commented:
We’ve been searching for the right partner to join us on our ambitious growth journey for some time and are confident that Hut 8 is the perfect fit.
Last year, Hut 8 mined 3,568 bitcoin, bringing its total reserve to 9,086 BTC — a 65% increase year-over-year. Wall Street currently holds a consensus “overweight” rating on the Toronto-headquartered company.