Fears from The FTX Collapse Now Coming Down said Hut 8 CEO

  • Leverton said the merger will also provide opportunities for diversification, both in terms of geography and revenue streams.
  • The collapse of FTX and crypto turmoil did not affect the merger of Hut 8 and US Bitcoin Corp (USBTC).

Hut 8 Mining CEO Jaime Leverton talked about the merger of U.S. Bitcoin and Hut 8 Mining Corp, in an BNN Bloomberg interview. She said that this merger will provide diversified revenue and also help the combined business scale. Hut 8 is a Toronto-based crypto mining company.

The all-stock merger was announced this Tuesday in a news release. While the combined company will be named Hut 8 Corp. and domiciled in the United States. This move towards consolidation came amid volatility in the crypto industry.

According to the release, the combined entity will have a market cap of around $990 Million.

According to Hut 8 press release, “New Hut will have access to approx. 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations. It will have 5.6 EH/s of installed self-mining capacity and 244 MW of total energy available at five sites with current self-mining operations.”

Michael Ho, co-founder and CEO of USBTC said “We’ve been searching for the right partner to join us on our ambitious growth journey for some time and are confident that Hut 8 is the perfect fit.”

Additionally, Asher Genoot, co-founder and President of USBTC said “The combination of Hut 8 and USBTC is an important step, but it’s truly just the beginning.”

It must be noted that the existing Hut 8 shareholders and USBTC stockholders will each collectively own, on a fully-diluted in the money basis, approx. 50% each of the stock of the Combined company.

Jaime Leverton Interview Highlights

Hut 8 Mining’s CEO said in the interview that “they think bringing these two entities together is just going to provide an incredible amount of scale and diversified revenue programs, which is very much a strategy for both of the entities independently.” This merger will allow the company to be more competitive and cost-effective, as she added.

During the interview Leverton said, “one of the advantages of this merger is geographic diversification. There’s uncertainty in regulatory environments on both sides of the border. She thinks it’s in the best interest of their business to have diversified revenue streams and diversified geographies.”

Leverton said “She thinks we’re seeing a lot of interest come back into crypto space, we’ve seen significant appreciation across the space so far in 2023.” Meanwhile, returning interest in the crypto industry is a sign that fears stemming from the collapse of FTX are “starting to subside a little bit.”

Leverton also believes there is an appreciation for crypto miners, similar to Hut 8, that take a “balance sheet first” approach with diversified revenue streams. 

Steve Anderrson
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Source: https://www.thecoinrepublic.com/2023/02/09/fears-from-the-ftx-collapse-now-coming-down-said-hut-8-ceo/