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Crypto company Hut 8 Mining signs deal to merge with US Bitcoin

Crypto company Hut 8 Mining signs deal to merge with US Bitcoin | iNFOnews.ca
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)

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