Hut 8, US Bitcoin to merge to create major Bitcoin mining company in North America
Hut 8 Mining, a Canadian digital asset miner, and U.S. Data Mining Group (doing business as US Bitcoin), a Bitcoin mining center operator, will combine their businesses in an all-stock merger.
The deal is aimed to create a major Bitcoin mining company with a combined market capitalization of approximately $990 million in North America.
Post-closing, the combined entity will be named Hut 8 Corp. and domiciled in the US apart from trading on the Toronto Stock Exchange and the Nasdaq.
The merger deal is expected to enhance Hut 8 Corp’s overall energy mix to include wind, hydro, and nuclear sources.
It will also enhance Hut 8 Corp’s operating capacity at high-quality sites in Alberta, Canada, and Texas, New York, and Nebraska in the US.
Asher Genoot — US Bitcoin co-founder and President said: “Together, we will become an exceptional self-mining operator, hosting provider, strategic operator of managed infrastructure, purveyor of high-performance computing infrastructure, and industry-leading ASIC repair and sales hub, underpinned by world-class operating technology and IP to drive growth.”
Hut 8 Corp will have gross energy of around 825MW across all six locations with self-mining, hosting, and managed infrastructure operations.
The new entity will have 5.6 EH/s installed self-mining capacity and 244MW of total energy at five locations with current self-mining operations across North America.
The five sites include Medicine Hat and Drumheller in Alberta, Niagara Falls in New York State, Granbury, and King Mountain in Texas.
Hut 8 Corp will manage 220MW of hosting infrastructure at its King Mountain site while hosting is owned by the King Mountain JV in which US Bitcoin has a 50% membership interest.
The combined Bitcoin mining company will manage 680MW of infrastructure operations powered by energy from renewable and zero-emission sources in Kearney, Nebraska and Granbury and King Mountain.
Completion of the transaction is subject to regulatory and court approvals and other customary closing conditions.