- Hut 8 integrates with US Bitcoin to diversify revenue streams.
- The combined company’s mining potential will be 5.6 EH/s.
- Hut 8 Mining Corp. stock closed slightly lower on Wednesday.
Hut 8 Mining Corp. closed slightly in the red on Wednesday after it revealed plans to merge with US firm Bitcoin Corp.
What is the benefit of the two companies?
The said merger is expected to help diversify revenue streams and reduce mining-related costs. It will create a larger publicly traded company operating under the name Hut 8 Corp.
Both companies have already received unanimous approval of the agreement from their boards of directors. In the press release, Jaime Leverton, who will continue to lead the joint venture, said:
The combination of Hut 8 and US Bitcoin accelerates our diversified strategy, positions us for near-term growth, and establishes us as a strong player ready and able to seize additional opportunities as they rise.
For this year, the Canadian digital asset miner is currently up more than 150%.
Hut 8 to see an increase in mining potential
Bill Tye will also retain his position as Chairman of the Board while Asher Ganot will remain Chairman of the combined company. The press release named Michael as its Chief Strategy Officer and Shenif Visram as its Chief Financial Officer.
The new Hut 8 Corp. will manage a total of 680 MW of infrastructure operations and see mining potential increase to 5.6 EH/s. According to Michael Ho – Co-Founder of US Bitcoin:
We have been searching for the right partner to join us on our ambitious growth journey for some time and we are confident that Hut 8 is the perfect choice.
Last year, Hut 8 mined 3,568 bitcoins increasing its reserves to 9,086 BTC – up 65% year-on-year. Wall Street currently has a consensus rating of “Overweight” on this Toronto-based company.