Hut 8 and US Bitcoin Corp can merge, says Canadian court

USBTC shareholders still need to approve of the deal before it goes forward

September 18, 2023 12:13 pm

Zerbor/Shutterstock modified by Blockworks

Hut 8 Mining has gotten the greenlight to merge with US Bitcoin Corp from the Supreme Court of British Columbia in Canada.

This is largely a procedural step forward, but the court’s approval is the latest domino to fall in the prepared business combination between the American and Canadian bitcoin miners that was originally announced in February 2023.

With over 97% of Hut 8 shareholders approving the merger last week, now shareholders of US Bitcoin Corp (USBTC) must also vote in favor, according to a press release.

USBTC also needs to finish its registration statement with the US Securities and Exchange Commission, a customary filing that companies need to fill out preceding and initial public offering.

As was true previously, the new company will be named Hut 8 Corp., and will be based in the US. Shares of the combined firm will be listed on both the Nasdaq and the Toronto Stock Exchange, trading under the symbol “HUT”.

If all the necessary documentation and filings are completed according to plan, the merger is expected to close sometime during the fourth quarter of 2023.

This news comes after Hut 8 endured a rocky earnings season. It faced a dramatic decline in its year-over-year revenue and bitcoin production in the second quarter of 2023.

At that time, Hut 8 executives were bullish on their diversification strategy by joining forces with USBTC, which is engaged in hosting and managed infrastructure operations.

Following the court’s approval, Hut 8’s stock bounced over 4% at the time of publication.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Newsletter

Blockworks Daily

Upcoming Events

Permissionless III Hackathon

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

learn more

Permissionless III

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

learn more

recent research

Research

Why Solana Mobile Should 100x Their Phone Production

Solana Mobile is a highly ambitious foray into the mobile consumer hardware market, seeking to open up a crypto-native distribution channel for mobile-first applications. The market for Solana Mobile devices has demonstrated a phenomenon whereby external market actors (e.g. Solana-native projects) continuously underwrite subsidies to Mobile consumers. The value of these subsidies, coming in the form of airdrops, trial programs, and exclusive NFT mints, have consistently covered the cost of the phone and generated positive returns for consumers. Given this trend in subsidies, the unit economics in the market for Mobile devices, and the initial growth rate and trajectory of sales, it should be expected that Solana mobile can clear 1M to 10M units over the coming years. As more devices circulate amongst users, Solana Mobile presents a promising venue for the emergence of killer-applications uniquely enabled by this mobile-first, crypto-native distribution channel.

by Luke Leasure