• Hut 8 and US Bitcoin have announced a merger that will combine two of Hut 8’s sites in Canada with all four of US Bitcoin’s sites in the US.
• The merged firm will be referred to as „New Hut“ or „Hut 8 Corp.“
• Hut 8 will also provide US Bitcoin with secured bridge financing up to $6.5 million until definitive loan documentation has been completed.
Hut 8 and US Bitcoin Announce Merger
Two notable Bitcoin mining firms, Hut 8 and US Bitcoin, have announced a merger as detailed in a press release published on Feb. 7. The resulting firm will be referred to as „New Hut“ or „Hut 8 Corp.“ This agreement must still close the deal in the second quarter of this year, however.
Merged Company Has Six Sites
The merger combines two of Hut 8’s sites in Canada with all four of US Bitcoin’s sites in the US. The combined firm utilizes 825 megawatts of gross energy across all six sites and has an estimated 5.6 exahashes per second (EH/s) of self-mining power across five sites. There are ongoing conflicts at both companies‘ third site which account for the variation in number of sites included in those estimates.
Secured Bridge Financing Provided By Hut 8
Hut 8 will provide US Bitcoin with secured bridge financing up to $6.5 million, but not until definitive loan documentation has been completed. This agreement is detailed within the press release published on Feb 7th and requires a special meeting to close the deal in the second quarter of this year.
Mining Industry Facing Challenges
The mining industry is currently facing high costs related to power and low market value for Bitcoin which has affected some companies like Hut 8 who reported lower output last December due to selling back power to their energy supplier. Despite this, they survived while their competitor Core Scientific failed suggesting they are still relatively strong overall positionally speaking within their industry sector..
Value Of Combined Company Expected To Improve Overall
The total value of both mining firms is expected to improve from combining forces despite current market conditions being challenging for miners globally today, particularly given that stock prices for both companies have dropped recently since announcing their merger plans..