Canadian regulator approves Hut 8 and US Bitcoin merger

Canada’s Competition Bureau does not intend to challenge the Hut 8 Mining and US Bitcoin merger, говорится in a press release.

“As we continue to work on closing the proposed deal with USBTC, the publication of the non-action letter from the regulator is a positive development,”

said Hut 8 CEO Jamie Leverton.

According to the release, the closing of the merger depends on approvals from other government bodies, court and shareholder approvals, as well as other conditions.

The plans to merge the company announced in February 2023. The new structure, named Hut 8 Corp, will be based in the United States and will hold a hashrate of 5.6 EH/s with access to 825 MW of capacity across six facilities.

Under the agreements, Hut 8 agreed to provide the partner with interim financing in the range of $6-6.5 million for a transitional period. Leverton noted that these funds are drawn from accumulated Bitcoin reserves.

Hut 8 is listed on the Nasdaq and the Toronto Stock Exchange. At the time of writing, the Canadian company’s shares had risen 2.35%, to $1.29.

In 2022, the mining company generated revenue of 150.7 million CAD ($109 million). Compared with the previous period, the figure fell by CAD 23.1 million amid higher Bitcoin mining activity.

In January 2023, Hut 8 mined 188 BTC and raised the reserve balance to 9,274 BTC. However the firm warned that it would sell all cryptocurrency mined during the month to fund operating expenses in connection with the merger.