The merger, which would result in the creation of the business “New Hut,” is still awaiting judicial and regulatory permission from U.S. and Canadian authorities.

Hut 8 Mining, a Canadian cryptocurrency mining company, has announced plans to merge with US Bitcoin to create Hut 8 Corp., also known as “New Hut.”

In a statement on February 7, Hut 8 stated that the boards of directors of the two companies had unanimously accepted a binding agreement to combine the two mining companies into one new company with its headquarters in the United States. Upon completion of the transaction, Hut 8 Mining and US Bitcoin, or USBTC, will merge to form New Hut, with shareholders collectively controlling 50% of the combined company.

As stated by Hut 8 CEO Jaime Leverton, “combining Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong, U.S.-based player that is ready and able to seize additional opportunities as they arise.

Following the acquisition, six facilities totaling about 825 megawatts will purportedly be available to the New Hut company for use in crypto mining and other operations. This will consist of five locations with a self-mining capacity of 5.6 exahashes per second (EH/s), located in New York, Texas, and the state of Alberta in Canada.

Leverton added:

“This Transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date […] During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack and/or exploring various debt options.”

Court and regulatory permission by U.S. and Canadian authorities are still pending on the merger. Hut 8 further stated that the City of Niagara Falls in New York and USBTC were engaged in “a legal fight” due to the noise pollution the mining operations were allegedly causing.

WonderFi, a different Canadian cryptocurrency company supported by Kevin O’Leary of Shark Tank, revealed in January that it was thinking about merging with Coinsquare to “build a Canadian crypto powerhouse.” Targeting asset management for younger generations, blockchain business GammaRey also struck a merger deal with analytics firm GoLogiq in the United States.