Crypto alternate FTX’s collapse and general crypto market turmoil weren’t key elements within the determination to merge crypto mining agency Hut 8 with US Bitcoin Corp., in response to Hut 8 CEO Jamie Leverton. 

On Feb. 8, Leverton stated that the merger was primarily about offering diversified income and serving to scale the mixed companies, stating:

“I believe this deal would have occurred regardless. The power for us to carry these companies collectively we predict is so extremely complementary.”

The all-stock merger was introduced on Feb. 7 with the mixed firm, now known as Hut 8 Corp or “New Hut,” to be based mostly primarily in the USA reasonably than Canada.

Relating to the FTX collapse in November, Leverton stated that fears had been “beginning to subside a bit of bit,” and curiosity was returning to the crypto business.

She added, “I believe we’re seeing numerous curiosity come again into this house, we have seen important appreciation throughout the house to this point in 2023.”

Merging the 2 mining companies is “going to offer an unbelievable quantity of scale,” she continued, including that there shall be “diversified income applications,” which is an efficient technique for each corporations independently.

New Hut will reportedly have entry to round 825 megawatts throughout six services in New York, Texas, and Alberta province in Canada. Its complete mixed mining capability shall be 5.6 exahashes per second (EH/s).

Commenting on the selection of location, Leverton stated that it was in the very best curiosity of the enterprise to have “diversified geographies,” including:

“One of many benefits right here is [that the merger is] giving us that geographic diversification. There’s uncertainty in regulatory environments on each side of the border,”

Hut 8 has a mining facility in North Bay, Ontario, nonetheless, operations have been suspended as a result of an ongoing court docket battle with its vitality provider.

US Bitcoin’s Niagara facility has problems with its personal with an ongoing dispute with the Metropolis of Niagara Falls over complaints by residents concerning noise ranges.

The agency offered extra particulars on the merger in a presentation on Feb. 8. The transaction is anticipated to shut in Q2, 2023, and is topic to shareholder, regulatory, and inventory alternate approvals.

Earlier this week, Leverton stated that throughout the interim interval, the agency plans to cowl its working prices by way of a mixture of promoting the Bitcoin it mines, and exploring numerous debt choices.

Associated: Bitcoin miner Hut 8 takes stoush with Ontario energy provider to court docket

Hut 8 inventory slumped 8% on the day the merger was introduced. Moreover, in response to MarketWatch, Hut shares had fallen 1.2% on the day to $2.12 in after-hours buying and selling. The inventory is at the moment buying and selling 86% down from its November 2021 all-time excessive of $15.28.