Will Hut 8 merge with Bitcoin?

The new company would combine the two firms' resources and create a new crypto-mining giant named Hut 8 Corp. Canada's Hut 8 and U.S. Bitcoin will merge their BTC mining businesses. The new company will look to strengthen its balance sheet and compete in the mining space.

What is the Hut 8 business combination agreement?

Pursuant to the Business Combination Agreement, shareholders of Hut 8 will receive, for each Hut 8 share, 0.2 of a share of New Hut common stock (the "Hut Consideration"), which will effectively result in a consolidation of the Hut 8 shares on a 5 to 1 basis.

What is New Hut 8?

The combined company will be named "Hut 8 Corp." ("New Hut" or the "Combined Company") and will be a U.S.-domiciled entity. The Transaction is expected to establish New Hut as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading best practices in ESG.

Why did Hut 8 stock fall 86%?

Hut 8 stock fell 8.6% in Tuesday trading after the merger announcement. While some miners have been able to buy new mining rigs and sites at firesale prices during bitcoin's downturn, others have been forced to file for bankruptcy or restructure. Austin's Core Scientific (CORZ) filed for bankruptcy in late December.