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.
Hut 8, US Bitcoin to merge to create major Bitcoin mining company in North America. Photo courtesy of Bianca Holland from Pixabay.
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.