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Hut 8 (OTC:HUTMF) share issuance to erase Bitfury debt

Tony Zerucha

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Hut 8 Mining (TSXV:HUT) (OTC:HUTMF) this week announced the issuance of 3,717,433 common shares in settlement of outstanding debt payable to Bitfury Holdings of CDN $5,576,150 based on a conversion price of $1.50 per share.

Completion of the conversion is subject to the approval of the TSX Venture Exchange. The securities issuable in connection with the transaction are expected to be subject to a hold period of four months.

Hut 8 also confirmed it received conditional approval from the TSXV with respect to the issuance of 838,511 common shares of Hut 8 to Bitfury, at an issuance price of $3.15 per common share, in satisfaction of US $2 million of the purchase price for such BlockBox AC data centers announced on Nov. 12, 2018.

The company wishes to announce that it has made application to the TSXV for the issuance of an additional 74,993 common shares to Induna Energy as part consideration for consulting services rendered in December 2018 and January 2019. Subject to TSXV approval, such shares are expected to be issued based on the closing price for the common shares of Hut 8 on the date before the grant date.

Since beginning its mining operations in December 2017, Hut 8 has mined more than 7,300 bitcoins. Hut 8’s current capital structure consists of 86,273,335 common shares outstanding, 2,882,222 warrants and 965,000 options. In total, Hut 8 owns and operates two sites in Alberta utilizing 85 BlockBox AC data centers with current operating capacity of 95.2 MW and 784 PH/s.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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