Hut 8 debuts on Nasdaq and announces Ethereum mining launch

The Canadian mining company Hut 8 Mining Corp. has gone public on the Nasdaq stock exchange. Its shares are now trading on the platform under the ticker HUT.

It’s a sweet day to be listing on the @Nasdaq 👉 Ticker: HUT @JaimeLeverton @Hut8Mining #btc #eth #ESG 🚀🚀🚀 pic.twitter.com/1T9xEwpkxp

— Hut 8 Mining (@Hut8Mining) June 15, 2021

Earlier the company announced an agreement with Canaccord Genuity Corp., which acted as lead underwriter on its behalf and the underwriting syndicate. On June 15 Hut 8 reported that it had acquired 23 million shares (common shares and a warrant) at CAD 5 per share (~$4.11).

The offering size amounted to CAD 115 million (~$94.43 million).

At the time of writing, Hut 8 shares were trading around $4.29, and its market capitalization stood at about $497.53 million. The company’s securities are also listed on the Toronto Stock Exchange.

In April, Coinbase’s shares began trading on Nasdaq at $381; by the close of the first day their price had fallen 13%. As of writing, the company’s securities are trading at $232 — roughly 40% below the opening price.

‘This is not an indicator of potential success or investor interest in Nasdaq-listed crypto companies. The true barometer now is the price of Bitcoin and Ethereum, as there is a direct correlation between Bitcoin sell-offs and the stocks of mining companies,’ said Hut 8’s Chief of Corporate Development Sue Ennis in an interview with Decrypt.

Hut 8 has mined Bitcoin since 2011. According to Bitcoin Treasuries, the company holds 3,233 BTC, valued at about $130 million at the time of writing.

Ennis said Hut 8 plans to start Ethereum mining by June 20. In doing so, she would become the first North American public crypto-mining company with a diversified portfolio.

Rival firms Riot Blockchain and Marathon Patent Group, also Nasdaq-listed, operate exclusively with Bitcoin.

In March 2021, Hut 8 completed a deal with Nvidia to purchase CMP-series GPUs for mining for $30 million. According to Ennis, the devices will be commissioned by June 20. She noted that with Ethereum moving to the Proof-of-Stake consensus algorithm Proof-of-Stake, the company will switch to mining Ethereum Classic.

Hut 8 is a member of Bitcoin Mining Council, an association of Bitcoin miners promoting the use of renewable energy in crypto mining. Ennis said ESG issues became a priority for the company, and Elon Musk’s tweets accelerated its plans to decarbonize operations.

‘[Elon Musk’s tweets] lit a fire under everyone, signaling the need to collaborate and present a united front,’ she said.

According to Ennis, Hut 8 currently obtains 70% of its energy from natural gas and 30% from wind farms.

She also added that the company is ‘doing everything possible’ to attract Chinese miners, persecuted by the PRC government, to its platform.

In April, Hut 8 announced plans to raise CAD 500 million from a Toronto Stock Exchange offering.