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.

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