Hut 8 seeks to raise close to $400M in latest offering

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Canadian block reward miner Hut 8 Mining Corp. (TSX: HUT|OTCQX: HUTMF) is eyeing to raise C$500 million (~US$398 million in its latest securities offering, public documents have shown.

The TSX-listed company outlined the plans within a short-form prospectus filed on April 7. Per the document, the proposed offering would occur during the 25-month span in which the prospectus remains effective.

The capital raise offering will take place on the Toronto Stock Exchange. The securities are to be delivered as common shares, debt securities, subscription receipts, warrants, convertible securities, and units—any combination thereof of the previously aforementioned. Hut 8 may offer the securities across more than one occasion during that period.

It should come as no surprise that Hut 8 is exploring a new capital raise. The FOMO-powered digital currency bull market frenzy has presented many opportunities for block reward miners to take advantage of foolish investors searching for fast ROI. 

The block reward miner is considering a raise while its stock remains up to reap hundreds of millions of dollars, which would give it an additional cushion to purchase more hardware. Hut 8’s share price is still up more than 115% since the beginning of January.

Over the long haul, Hut 8 share price will inevitably plunge unless it embraces Bitcoin, now found on the Bitcoin SV blockchain, and matures into a transaction processor. While this forecast sounds dire, it’s the logical conclusion of continuing to support a BTC blockchain ecosystem filled with blatant corruption and Ponzi scheme promoters living on borrowed time. 

Coinciding with the raise, the company announced its Chief Financial Officer is resigning. Jimmy Vaiopoulos, its CFO, will resign from his roles on April 26th. The press release stated that Jimmy would remain with Hut 8 in an advisory role once he’s handed over responsibilities to incoming CFO Shane Downey, CPA, CA. 

Jaime Leverton, Hut 8’s CEO stated, “We are thrilled to welcome Shane as Chief Financial Officer of Hut 8 Mining. Shane brings a tremendous breadth of experience and acumen in M&A and corporate finance and has a track record of delivering strong results as CFO of a TSX-listed reporting issuer.” “We want to thank Jimmy for all of his great contributions to the Company and we are pleased that he will remain as a valuable resource to Hut 8’s team moving forward.”

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”