Hut 8 Mining’s Underwriters Agree to Buy $82M in Stock Ahead of Nasdaq Listing

Hut 8 Mining’s Underwriters Agree to Buy $82M in Stock Ahead of Nasdaq Listing

Canadian crypto mining company Hut 8 – whose shares will begin trading on Nasdaq next week – has entered an agreement with Canaccord Genuity, its lead underwriter, to raise C$100 million ($82 million).

  • The Toronto-based company said the underwriters have agreed to buy 20 million units at a price of C$5.00 per share with each unit containing one common share and a warrant that gives holders the right to purchase one half of a common share.
  • Each warrant will be valid for two years after the date of issuance at an exercise price of $6.25 per share, Hut 8 said.
  • Proceeds will be used to fund the expansion of the Hut 8's crypto mining sites and its power capacity. The money raised will also pay for the purchase of mining equipment and for joint ventures or acquisitions, Hut 8 said.
  • On Thursday, the company announced it had received approval for its shares to be listed on the Nasdaq Global Select Market. Hut 8 will also retain its listing on the Toronto Stock Exchange (TSX).
  • Hut 8 Mining said it expects to trade on the Nasdaq Global Select Market under the “HUT” ticker on or about June 15.
  • HUT shares listed on the TSX were trading down 19% at C$4.93 at the time of publication.
  • Source