A crypto mining company has been granted conditional approval to list on the Toronto Stock Exchange (TSX), becoming the first company of its kind to be listed in a public trading venue in Canada.
Hut 8 Mining Corp. is the first company to be listed via the Toronto Stock Exchange Sandbox, where it will be given a 12-month probation period to demonstrate compliance. Should the company pass this compliance threshold, it will automatically join the main TSX after that period, opening it up to mainstream access to capital markets.
The Canadian mining company is an exclusive North American partner of mining hardware manufacturer Bitfury Group Ltd. Across its two sites in Alberta, the firm contributes 963 PH/s to the network, running 94 BlockBox AC mining units.
The TSX Sandbox was set up to allow firms that don’t satisfy the listing requirements for the main exchange, but might still otherwise be suitable candidates for inclusion on the exchange.
Hut 8 will be allowed a rolling 12-month period during which it must avoid compliance issues. During that period, shares will be available for trading in the same way as regularly listed securities. Any compliance issues arising during the period will reset the probation period.
For the duration of the period, Hut 8 will be required to make two additional disclosures, highlighting risks inherent in their investment proposition: First, “The value of Hut 8 shares is directly linked to the price of the Bitcoin held by the company. Volatility in the Bitcoin market can therefore impact the price of shares.” Also, “The company is in an early stage of development and therefore has a limited history of operations.”
Hut 8 securities will be listed under the HUT ticker symbol, or as “HUTMF” on the OTXQX Exchange.
The news means Hut 8 will now be able to access capital markets, the first company of its kind to list in this way in Toronto. It also serves as a trailblazer for other mining firms to list in future, though it remains to be seen whether the firm can overcome the compliance tests necessary to graduate to a full listing.
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