The Supreme Court of British Columbia issued the final order approving the merger on Monday, bringing the two companies closer to forming a new entity: Hut 8 Corp or New Hut.
The two companies will merge in an all-stock arrangement, with the new company to be domiciled in the United States. As CoinGeek reported in February, the new entity will be listed on both the Nasdaq and the Toronto Stock Exchange, with an estimated market capitalization of $990 million.
Following the approval in Canada, the two companies now await the registration of New Hut in the U.S. and the approval of USBTC shareholders. The two have filed their application for approval with the SEC, which must issue its clearance before the new entity can be registered.
Hut 8 shareholders voted overwhelmingly in favor of the merger a week ago. 97% of the shareholders approved the arrangement, with 95% and 87% voting in favor of the issuance of New Hut shares and the incentive plan, respectively.
“I am so grateful that our shareholders have overwhelmingly approved the Transaction: this successful vote is noteworthy because it reflects how engaged and supportive they are of our Merger of Equals,” commented Hut 8 CEO Jaime Leverton.
The merger is expected to close in Q4 of 2023.
New Hut will be one of the largest miners in North America, with a combined 825 MW of energy across six mining sites. The new company will double down on BTC block reward mining, but it will also diversify into other services, including hosting and infrastructure management. It will have facilities in Texas, Nebraska, and New York in the U.S. and Alberta in Canada, with a combined workforce of 210 employees.
The merger comes on the back of one of the toughest periods for block reward miners. An extended ‘crypto’ bear market and the collapse of some key partners and financiers have pushed the miners to the limit. Many have buckled and imploded, from Compute North to Core Scientific (NASDAQ: CORZW).
Hut 8 has not been immune to the tough times. In Q2, the company recorded a $9.2 million loss as revenue dipped 56% from a similar period last year. It blamed its woes on the increase in average BTC network difficulty and the shutdown of its mining facility in North Bay, Canada
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