Bitcoin Miner Hut 8 Talks Operational Issues, US Merger in Earnings Call
• Hut 8 Mining (HUT) is trying to complete a large merger with U.S. Bitcoin Corp., but have experienced operational issues across its bitcoin mining sites.
• The company has removed all machines from their North Bay, Ontario site due to an ongoing dispute with their energy provider and are facing „electrical issues“ at the Drumheller site in Alberta.
• Hut 8 received a letter of no action from the Canadian competition authority for its proposed merger, making it one step closer towards completion.
Hut 8 Talks Operational Issues and Merger in Earnings Call
Hut 8 Mining (HUT) is attempting to complete one of the largest deals in the sector – the company’s merger with U.S. Bitcoin Corp.
North Bay Facility Disputed With Energy Provider
In mid-November 2022, Hut 8 stopped mining with 7,000 rigs at a site in North Bay, Ontario, due to an ongoing dispute with its energy provider, Validus Power. Hut 8 has now removed all machines from the facility to a site in Medicine Hat, Alberta.
Drumheller Site Experiencing Electrical Issues
At its Drumheller site in Alberta, Hut 8 has been facing „electrical issues“ that have hit operations. „We are in the early stages exploring supplementary options to mitigate the challenges and hope we have more definitive plan,“ said the firm’s newly appointed chief financial officer.
Letter of No Action Issued by Competition Authority
Hut 8 did receive a letter of no action from the Canadian competition authority for its proposed merger with U.S. Bitcoin Corp., meaning they don’t plan on challenging it.