Hut 8 Obtains Supreme Court Approval for USBTC Merger in Canada

<p>Hut 8, the Canadian Bitcoin mining firm, has received
final clearance from the Supreme Court of British Columbia to proceed with its
planned merger with US Bitcoin (USBTC), according to a report by Cointegraph.
This merger, initially announced in February 2023, will create "New
Hut," a publicly-traded U.S.-based entity.</p><p>One of the key highlights of the merger is the potential
to open up 825 megawatts of Bitcoin mining capacity, which spans six distinct
Bitcoin mining and data centre facilities. However, the closing of the merger
remains subject to a few remaining requirements, including approval from the
shareholders of USBTC.</p><p>Hut 8 anticipates that
the final transaction which formalizes the <a href="https://www.financemagnates.com/terms/m/merger/">merger</a> and the creation of New Hut
will occur before the end of 2023. Moreover, New Hut plans to list its shares
on the Nasdaq and Toronto stock exchanges, trading under the ticker symbol
$HUT. </p><p>Paving the Way for 'New
Hut'</p><p>Furthermore, Digital Currency
Group's subsidiary Foundry Digital, which focuses on institutional mining and
staking, announced a formal partnership with Hut 8 in August 2023. The
collaboration will see Hut 8 supporting various business offerings for Foundry
through its Ontario-based data centre. The partnership has been in place since
2020.</p><p>In the second quarter of
2023, <a href="https://www.financemagnates.com/cryptocurrency/hut-8-reports-decline-in-q2-revenue-amid-low-mining-output/" target="_blank" rel="follow">Hut
8's revenue decreased</a> from
$25 million to $19 million, marking a decline of 56% year-over-year compared to
the same period the previous year when the company reported $44 million in
revenue. Additionally, the company mined only 399 Bitcoins during the quarter, which was a steep drop of 58% from the previous year.</p><p>Hut 8's profit from
mining operations also took a hit, dropping to $3.2 million from $14.9 million
in the second quarter of the previous year. As of June 2023, the company's
installed <a href="https://www.financemagnates.com/terms/h/hash-rate/">hashrate</a> was 2.6EH/s. According to a report by <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>, the challenges
faced by Hut 8 were the suspension of operations at its North Bay facility and
electrical issues at the Drumheller facility.</p><p>Hut 8's Highlights AI
Demand</p><p>Jaime Leverton, the CEO
of Hut 8, recently said: "We continued to build momentum toward closing
our transaction with USBTC by progressing toward receiving regulatory approvals
to proceed and improving our projected post-merger self-mining capacity to 7.5
EH/s."</p><p>Hut 8 is witnessing a
growing demand for artificial intelligence (AI) and high-performance computing
(HPC) as it undertakes the relocation of 6,400 mining rigs from its idle North
Bay site in Ontario, Canada. This strategic move comes amidst an ongoing
legal dispute with third-party energy supplier Validus Power, leading to the
suspension of operations at the North Bay facility since November 2022. </p><p>Besides that, the Canadian Bitcoin mining firm recently
strengthened its financial resources with a <a href="https://www.financemagnates.com/institutional-forex/bitcoin-miner-hut-8-secures-50m-credit-facility-from-coinbase/" target="_blank" rel="follow">credit
facility worth $50 million</a> from Coinbase Credit, a subsidiary
of the renowned U.S.-based cryptocurrency exchange Coinbase. This credit
facility, which was obtained in June, is aimed at supporting Hut 8's general
corporate activities.</p>

This article was written by Jared Kirui at www.financemagnates.com.