Canada's Hut 8 Mining's CEO on merger with US Bitcoin
, BNN Bloomberg
The newly announced merger of US Bitcoin and Hut 8 Mining Corp will provide diversified revenue and help the combined business scale, according to the chief executive of the Toronto-based crypto mining company.
The all-stock merger was announced Tuesday in a news release and Hut 8 Mining‘s Jaime Leverton will continue to act as the chief executive officer. The combined company will be named Hut 8 Corp. and will be domiciled in the U.S.
The move toward consolidation comes amid volatility in crypto markets.
“We think bringing these two entities together is just going to provide an incredible amount of scale [and] diversified revenue programs, which is very on strategy for both of us independently,” Leverton said in an interview with BNN Bloomberg Tuesday.
The merger will allow the company to be more competitive and cost-effective, she said.
The combined entity will have a market capitalization of roughly US$990 million, the release said.
According to Leverton, the merger will also provide opportunities for diversification, both i terms of geography and revenue streams.
“One of the advantages here is [that the merger is] giving us that geographic diversification. There's uncertainty in regulatory environments on both sides of the border,” she said.
“I think it's in the best interest of our business to have diversified revenue streams [and] diversified geographies.”
Following the collapse of FTX Group in November 2022, Leverton said interest in the crypto space is beginning to return.
“I think we're seeing a lot of interest come back into this space [crypto], we've seen significant appreciation across the space so far in 2023,” she said.
Returning interest in the crypto industry is a sign that fears stemming from the collapse of FTX are “starting to subside a little bit,” according to Leverton.
Leverton said she believes there is an appreciation for crypto miners, similar to Hut 8, that take a “balance sheet first” approach with diversified revenue streams.
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