Hut 8 Corp. (NASDAQ: HUT) witnessed a substantial surge in its stock during the after-hours trading on Tuesday, experiencing a noteworthy increase of 4.65% to attain a value of $11.93. This ascent followed an 8.47% upswing during the regular trading session, concluding with Hut 8 stock at $11.40. This upward momentum is a direct consequence of a strategic maneuver executed last week.
Hut 8 (HUT) successfully completed its business combination with U.S. Data Mining Group, Inc. In accordance with this merger, Hut 8 and U.S. Data Mining, operating as US Bitcoin Corp (“USBTC”), seamlessly united through an all-stock merger of equals. The resulting entity, officially christened as “Hut 8 Corp.” (“New Hut”), is now a U.S.-based establishment.
This corporate consolidation stands out as the most substantial merger and acquisition transaction ever to unfold within the digital mining sector. It signifies a highly calculated alliance between two entities boasting complementary strengths, anticipated to yield synergies surpassing the mere sum of their individual capabilities.
New Hut is primed with a pipeline brimming with greenfield and brownfield opportunities, comprehensive integration along the mining value chain, superior operational leverage and expertise, as well as an assortment of diverse and uncorrelated fiat revenue streams. Following the transaction’s completion, the trading of Hut 8 common shares ceased on both Nasdaq and the Toronto Stock Exchange (“TSX”) ahead of the market opening on December 4, 2023.
From the commencement of trading on the same date, New Hut common stock began trading on Nasdaq and the TSX, identified by the ticker symbol “HUT.” Shareholders of Hut 8 received 0.2 shares of New Hut common stock for each Hut 8 share held, effectively consolidating Hut 8 shares on a 5 to 1 basis. Meanwhile, USBTC stockholders received 0.6716 shares of New Hut common stock for each share of USBTC capital stock.
Unified under the banner of New Hut, the reinforced team is committed to propelling growth across economical mining operations, high-performance computing, extensive hosting operations, and innovative managed services business. New Hut maintains a laser-like focus on enhancing efficiency and operational excellence across its spectrum of activities, ensuring that the reconstituted entity is well-positioned and exceptionally agile as it navigates the challenges of the halving and beyond.