Proactive Investors - Hut 8 Mining Corp ({{TSX:HUT) on Monday said its previously announced merger with US Bitcoin Corp has received final approval from the Supreme Court of British Columbia.
The two companies revealed the proposed business combination in February of this year, with the new entity to be known as Hut 8 Corp (New Hut).
Existing Hut 8 Mining shareholders will receive 0.2 of a share of New Hut common stock for each Hut 8 share held, which will effectively result in a consolidation of the Hut 8 shares on a 5 to 1 basis, while shareholders of US Bitcoin will receive 0.6716 of a New Hut share for each US Bitcoin share held.
The combined company is expected to have a market capitalization of about US$990 million and its shares will trade on the Nasdaq and the TSX under the trading symbol 'HUT'.
New Hut will have access to about 825 megawatts (MW) of gross energy across all six of its sites and will have 5.6 exahashes per second (EH/s) of installed self-mining capacity, according to the company.
The merger is expected to be completed during the fourth quarter of 2023.
Shares of Hut 8 Mining climbed 7% to $3.05 in early Monday trading on the TSX and have gained 168% year to date.