HUT 8 and US Bitcoin have decided to merge. This multi-million BTC mining business deal is predicted to change the course of the digital asset mining scene.
The two firms will merge to create a new crypto-mining business called Hut 8 Corp (“New Hut” or “Combined Company”), domiciled in the US. They have announced consolidating resources and restructuring their balance sheet to compete in the mining space. Hut 8 Corp will have a market capitalization of about £990 million. According to an official statement, the new company will have access to 825MW of ‘gross-energy’ across 6 sites for mining, hosting, and managing infrastructure operations.
Existing Hut 8 and US Bitcoin holders will own 50% each of Hut 8 Corp
Bill Tai will maintain his position as the chairman of the board. Jamie Leverton will continue to be the CEO. Michael Ho to become Chief Strategy Officer of Hut 8 Corp. Both USBTC and Hut 8 will become wholly-owned subsidiaries of Hut 8 Corp. The new company will be equally owned by the existing shareholders of each firm.
Hut 8 Corp Merger estimated to Accelerate ESG’s Objectives
The merger deal will increase “New Hut” chances of bitcoin mining at the World’s highest capacity Bitcoin mining sites like Alberta in Canada and Texas and New York in the USA.
New Hut will add renewable and zero carbon emission energy to its overall energy mix. Its focus will be on economic mining and generating highly diversified revenue streams. Thus, the new team is committed to accelerating ESG’s industry best practices, efforts, and objectives.
Co-founder of USBTC says, “Hut 8 is the perfect fit”
Michael Ho( co-founder and CEO of USBTC) and the new Chief Strategy Officer of Hut 8 Corp commented that Hut 8’s strong track record, commendable fiscal management, and compatible approach in generating diversified lines of revenue are what attracted them. He says Hut 8 is the perfect fit to join them in their ambitious growth journey.
Shares of Hut 8 have fell as low as 11% after Merger Deal
Hut 8 Mining Corp. (Hut 8) (Toronto Stock Exchange/TSX: HUT) (Nasdaq: HUT) was the first Canadian and one of North America’s largest and leading digital asset miners. Hut 8 was led by an exceptional team of technologists and business-builders, bullish on bitcoin, blockchain, and web 3.0. It has revolutionized and created a hybrid data model to serve both the traditional computing world and the nascent digital asset computing sector. Hut 8 was the first Canadian mining company to be listed on Nasdaq Global Select composite index. It was the first blockchain company to be listed on TSX Composite Index. Since the merger was announced, the shares of Hut 8 have fallen as low as 11%.
Stockholders will receive 0.6716 of a share of New Hut per US Bitcoin share
USBTC is a large-scale North American mining company. It has campuses in 3 locations across the US: Texas, Nebraska, and New York. It was founded by a team of ingenious entrepreneurs and enterprising business executives. USBTC has always been ambitious with its growth roadmap, and with this merger, they have set out to charter a new dimension and trajectory in the crypto economy. As a result of the merger, the stockholders of USBTC will receive 0.6716 of a share of New Hut for each share of USBTC capital stock they hold.
How does the Merger benefit the Investors?
The merger will create financial stability:
The merger would result in a total combined market worth of 990 million US dollars. The consolidation of resources between USBTC and Hut 8 will result in a stable financial condition in the crypto economy even with turbulent market cycles. This will, in turn, encourage investors to invest.
Hut Consideration and USBTC Consideration:
Shareholders of Hut 8 will receive 0.2 of a share of New Hut per Hut 8 share, which will result in Hut 8’s five-to-one reverse stock split. Shareholders of USBTC will receive 0.6716 of a share of New Hut per USBTC share.
Aims to Achieve Diversified Portfolio:
Both Hut 8 and USBTC shares a mutual interest in generating diversified fiat revenues. Now with combined forces, Hut 8 Corp will have a diversified portfolio of cryptocurrencies. New Hut will benefit from Hut 8’s specialization in crypto mining and US Bitcoin Corp’s expertise in crypto trading and blockchain technology.
This, in turn, solidifies a strong foundation for the company to grow and expand and value creation for investors.
Presence in Two Countries
Hut 8 is a Canadian firm, and USBTC is a US firm. After the Merger, although New Hut will be based in the USA, owing to its mining sites, it will have a presence in both Canada and the United States. This will allow them to be well-equipped to absorb the uncertainties of an ever-changing crypto market. Thus, offering favorable investing options for investors.
An emerging major player in the Crypto Industry:
New Hut’s combined executive team will have 210 members. It will significantly benefit from the knowledge and experience of its management and stakeholders. It will have access to a large and diverse customer base from crypto mining, crypto trading, and blockchain technology. This will ensure technology and resources for New Hut to invest in emerging technologies and cutting-edge projects. Which, as a result, will take them to the top as a major player in the crypto industry. And it is the investors who will ultimately reap its benefit.
Commitment to Economic Mining
New Hut has stated its commitment and objectives to work to accelerate and enhance ESG’s leading-industry goals. New Hut’s focus will be on generating diversified fiat revenues and economic mining. According to an official statement, New Hut will bring in renewable and carbon-neutral energy from wind and hydro to their gross energy mix. This, in our opinion, will tremendously create New Hut’s footing in the crypto space as an environmentally conscious green player. This, in turn, opens doors for investors with love and a knack for the environment
Other Alternatives Green Crypto To Invest
For investors who want to wait and watch how this merger pans out can always invest in other green alternatives such as C+Charge (CCHG). One of the greenest cryptocurrencies to buy. It offers Carbon Credits as rewards.
- How to Buy Bitcoin?
- Greenest Cryptos to Buy
Fight Out (FGHT) – Newest Move to Earn Project
- CertiK audited & CoinSniper KYC Verified
- Early Stage Presale Live Now
- Earn Free Crypto & Meet Fitness Goals
- LBank Labs Project
- Partnered with Transak, Block Media
- Staking Rewards & Bonuses
Join Our Telegram channel to stay up to date on breaking news coverage
Credit: Source link