Canada's Hut 8 Mining to merge with US Bitcoin to weather crypto downturn

[February 07, 2023]  (Reuters) -Canada's Hut 8 Mining Corp will merge with rival US Bitcoin Corp to create a crypto mining giant in North America, consolidating after a steep fall in valuations for the crypto sector that saw high-profile collapses in recent months.   

Bitcoin are seen in this illustration picture taken September 27, 2017. REUTERS/Dado Ruvic/File Photo

The companies said the combined entity will have a market capitalization of around $990 million, and be equally owned by shareholders of both the companies.

The merged entity, to be called Hut 8 Corp, will be listed on both the Toronto Stock Exchange and the Nasdaq after the all-stock deal.

In December, Binance.US said it will acquire assets of bankrupt crypto lender Voyager Digital in a deal valued at roughly $1 billion.

(Reporting by Mehnaz Yasmin and Niket Nishant in Bengaluru; Editing by Sohini Goswami and Shinjini Ganguli)

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