An advertisement for Bitcoin, one of the cryptocurrencies, is displayed on a building in Hong Kong, on Nov. 18, 2021. Canadian cryptocurrency company Hut 8 Mining Corp. says it has signed a deal to merge with U.S. Data Mining Group Inc., the company behind US Bitcoin Corp. THE CANADIAN PRESS/AP-Kin Cheung
TORONTO – Canadian cryptocurrency company Hut 8 Mining Corp. says it has signed a deal to merge with U.S. Data Mining Group Inc., the company behind US Bitcoin Corp.
Under the agreement, the combined company will be named Hut 8 Corp. and will be an U.S.-domiciled company.
The deal will see shareholders of Hut 8 receive 0.2 of a share in the combined company for each Hut 8 share they own, while shareholders of USBTC will receive 0.6716 of a share in the new company for each USBTC share they hold.
Ownership in the new company will be about evenly split between the existing Hut 8 and USBTC shareholders.
The aggregate consideration implies a combined market capitalization of about U$990 million.
The deal requires approval by shareholders of both Hut 8 and USBTC as well as regulatory and court approvals.
This report by The Canadian Press was first published Feb. 7, 2023.
Companies in this story: (TSX:HUT)
