Canada's Supreme Court Approves the Merger of Publicly Listed Mining Companies Hut8 and USBTC

Get the full story on the Canada Supreme Court's recent approval of the merger between Nasdaq-listed Hut8 and US Bitcoin Corp (USBTC).

Discover how this deal sets a new precedent in the cryptocurrency mining sector, paving the way for business and energy diversification.

Stay updated on this transformative merger expected to be finalized by the end of 2023.

Landmark Decision: Canadian Supreme Court Greenlights Hut8 and USBTC Merger

Nasdaq-listed cryptocurrency mining company Hut8 announced on the 18th that it has received final approval for its merger with US Bitcoin Corp (hereinafter referred to as USBTC) from the Supreme Court of British Columbia, Canada.

Headquartered in Canada, Hut8 and USBTC will merge their entire stock in a share-for-share merger, creating a new business entity based in the United States, to be named "Hut8 Corp."

Both companies had announced their intention to merge in February, and approval from shareholders and regulatory bodies was a precondition for the merger.

Hut8 reported that it had obtained shareholder approval during its annual shareholder meeting on the 13th. With this latest development, the companies have now also received the final approval needed on the regulatory front.

There are several conditions that must be met to complete the merger process, such as the effective registration of USBTC and approval from its shareholders. Hut8 states that it expects the merger to be finalized by the end of 2023.

Implications and Future Prospects of the New Hut8 Corp

The new entity, commonly referred to as "New Hut," is expected to have a market capitalization of $990 million. It plans to be listed on both Nasdaq and the Toronto Stock Exchange under the ticker symbol "HUT."

In the first quarter of 2023, Hut8's revenue declined year-over-year due to the forced suspension of some of its mining machines.

Issues with the electrical systems at its Drumheller, Alberta facility, and a legal dispute over a breach of contract with power supplier Validus in North Bay, Ontario, were cited as the reasons behind this.

To meet the new demand for artificial intelligence (AI) and high-performance computing, Hut8 has relocated approximately 6,400 machines from Ontario to Texas as of July, which had been non-operational since November of last year.

"New Hut" is expected to have access to approximately 825 megawatts of electricity across six geographically dispersed facilities in North America.

Diversification of revenue sources is anticipated, thanks to USBTC's scalable mining facilities, large-scale computer hosting businesses, and data center infrastructure management.

Sustainable Initiatives: A Focus on Renewable and Zero-Emission Energy

"New Hut" has plans to use renewable and zero-emission (carbon-neutral) energy in its operations in New Brunswick, Canada, and Texas, USA.

The entire mining industry also seems to be transitioning to alternative energy sources.

According to Swan Bitcoin, a financial services company related to Bitcoin, the average mining cost per BTC is about $26,000, but companies using renewable energy are achieving lower costs, ranging from $5,000 to $15,000.

Riot Platforms, another US-listed mining company, reported in its Q2 earnings that the cost per BTC mined was $8,389, crediting wind and solar energy production in Texas for contributing to these low energy costs.

Kent Haliburton of Sazmining, which offers hosted Bitcoin mining, pointed out that the largest cost in mining operations is electricity.

He said that the cheapest electricity is surplus power, which is plentiful in renewable energy production, making it ideal for Bitcoin mining.

In Sazmining's facilities located in Wisconsin, USA, and Paraguay, South America, all electricity is being supplied by excess hydropower.