Canada’s Hut 8 Mining (HUT) plans to merge with U.S. Bitcoin (USBTC) in an all-stock deal that will create North America’s biggest cryptocurrency miner.
In a news release, the two companies said that their boards of directors have approved the merger that will give the newly combined company a market capitalization of $990 million U.S.
The new company will be called “Hut 8 Corp.” and be based in the U.S.
The new Hut 8 will have access to approximately 825 MW of gross energy across six separate cryptocurrency mining sites that include self-mining, hosting, and managed infrastructure operations.
Under terms of the deal, shareholders of Hut 8 will receive 0.2 of a share of the new company’s common stock, which will result in a consolidation of the Hut 8 shares on a five-to-one basis.
Stockholders of USBTC will receive 0.6716 of a share of the newly formed company’s common stock.
It is not immediately clear when the merger will be completed.
Currently based in Toronto, Hut 8 Mining’s stock has fallen 65% over the past year to trade at $3.19 per share.
