Hut 8 to merge with US Bitcoin to diversify revenue streams.
Mining potential of the combined company will be 5.6 EH/s.
Hut 8 Mining Corp stock ended slightly down on Wednesday.
Hut 8 Mining Corp ended slightly in the red on Wednesday after revealing plans to merge with US Bitcoin Corp.
What’s in it for the two companies?
The said merger is expected to help diversify revenue streams and lower costs related to mining. It will create a larger publicly listed company that will operate under the name Hut 8 Corp.
Both companies have already secured unanimous approval for the agreement from their respective boards. In the press release, Jaime Leverton, who will continue to lead the joint company said:
Bringing together Hut 8 and US Bitcoin accelerates our diversified strategy, positions us for near-term growth, and establishes us as a strong player that’s ready and able to seize additional opportunities as they rise.
For the year, the Canadian digital asset mining company is currently up more than 150%.
Hut 8 to see a boost to mining potential
Bill Tai will also keep his role as Chairman of the Board while Asher Ganoot will remain the President of the combined firm. The press release named Michael Ho its Chief Strategy Officer and Shenif Visram its CFO.
The new Hut 8 Corp will manage in total 680 MW of infrastructure operations and note an increase in mining potential to 5.6 EH/s. According to Michael Ho – the co-Founder of US Bitcoin:
We’ve been searching for the right partner to join us on our ambitious growth journey for some time and are confident that Hut 8 is the perfect fit.
Last year, Hut 8 mined 3,568 bitcoin that increased its reserve to 9,086 BTC – up 65% year-on-year. Wall Street currently has a consensus “overweight” rating on this Toronto-headquartered firm.
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