Despite the prolonged bearish trends that continue to envelop the crypto market, several firms are positioning themselves in a way that would benefit them in the long run. Bitcoin mining companies Hut 8 and U.S. Bitcoin Corp. are vivid examples of such firms.
According to a Thursday announcement, the companies have stepped up the expected mining capacity for their combined Bitcoin mining company.
Merger Deal Births New Hut
In February, Hut 8 and U.S. Bitcoin Corp entered an all-stock merger deal to create a new mining company called Hut 8 Corp (New Hut). This kind of agreement entails that stocks facilitate the acquisition instead of the commonly-used cash. The new company will function as a publicly-traded Bitcoin mining firm operating on a large scale.
At the time of the announcement of the merger deal, New Hut, based in the U.S., was expected to have a market capitalization of approximately $990 million with 825 megawatts of electricity across six mining locations.
Increased Mining Capacity
In its latest announcement, the company revealed that it had filed an amendment registration statement with the United States Securities and Exchange Commission (SEC) to increase its expected self-mining capacity from a previously disclosed 7.02 EH/s to 7.5 EH/s. The new change affects its mining facilities across several parts of the U.S.
Hut 8 Corp cited “the energization of additional miners” at U.S. Bitcoin Corp’s sites as the reason behind the new development. Commenting on the new amendment, Hut 8 CEO Jaime Leverton said:
“We are making measurable progress on key files that will positively position New Hut to be very competitive in the market with 7.5 EH/s of self-mining capacity. We continue to be laser-focused on completing this merger in an expedient manner to form a stronger business backed by both Bitcoin and fiat revenues generated from robust North American-wide operations.”
Meanwhile, Hut 8’s stock, $HUT, saw a 3.8% price decline on Thursday. The asset now trades at around $2.06.
