Hut 8 Mining Merges With US Bitcoin Corp, Signs Of Market Recovery?

Canada-headquartered Hut 8 Mining Corp. plans to merge with US Bitcoin Corp. in an all-stock deal to create a crypto mining giant in North America, the company announced on Tuesday.

The Boards of Directors of both companies have approved a definitive business combination agreement. The board has decided that the combined company will be a U.S.-based entity named Hut 8 Corp.

Hut 8 and US Bitcoin Merger

According to a press release on February 7, Hut 8 Mining Corp., a Canada-based Nasdaq-listed crypto mining company will merge with US Bitcoin Corp.

Jaime Leverton, CEO of Hut 8, said:

“Our established track record of creating shareholder value through organic growth and strategic acquisitions while maintaining a balance sheet-first approach has positioned us perfectly to advance our growth trajectory through this business combination.”

The new combined company will be listed on both Toronto Stock Exchange and Nasdaq after the completion of the deal. Hut 8 Corp. will focus on economical mining, highly diversified revenue streams, and industry-leading best practices in ESG.

The new company will have access to about 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations. It will help the combined mining entity increase Bitcoin mining operations and better manage its mining machines’ infrastructure.

Moreover, Bill Tai to maintain the role as Board Chair, Jaime Leverton and Asher Genoot to continue as CEO and President, respectively. Meanwhile, Michael Ho to become Chief Strategy Officer and Shenif Visram to continue as CFO.

Hut 8 Mining (HUT) shares price ended 7% higher at $2.38 on Monday. The HUT shares prices are trading nearly 5% higher at 2.49 during pre-market hours on Nasdaq today, as per Yahoo Finance.

Also Read: Popular Analyst Confirms Dogecoin Breakout, Sets Price At This Level

Crypto Mining Industry Reporting Better Bitcoin Production

Shares of crypto mining companies have surged on average 100% in January 2023, after facing challenges including debt and high-energy prices for almost a year.

Nasdaq-listed crypto mining companies such as Marathon Digital Holdings, HIVE Blockchain Technologies, Hut 8 Mining, Riot Platforms, and Bitfarms have reported increases in their Bitcoin production in December and January.

Hut 8 Mining produced 161 BTC in December and 3,568 BTC total mined throughout 2022. The company has 9,086 BTC in reserves and 100% of bitcoins are deposited into custody.

Also Read: Bitcoin Activity Jumps Three-Year High, Is BTC Price $30K Next?