Crypto Mining Firm Hut 8 Seeks $396M Raise in Latest Offering

The securities offering is expected to take place on the Toronto Stock Exchange.

By Sebastian Sinclair

Apr 8, 2021 at 9:07 a.m. UTC

Updated Sep 14, 2021 at 12:38 p.m. UTC

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Sebastian Sinclair

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Public Canadian crypto mining company Hut 8 is looking to raise C$500 million (US$396.6 million) over a 25-month period via its latest securities offering.

According to a short form prospectus filed by the company on April 7, the offering is expected to be conducted on the Toronto Stock Exchange.
The securities are to be delivered in the form of common shares, debt securities, subscription receipts, warrants and convertible securities.
They will be offered together as a unit, or any combination thereof, having an initial offer price of up to $500,000,000, according to the prospectus.
Given the company had negative cash flow from operating activities for the year ended Dec. 31, 2020, Hut 8 said some of the proceeds from the offering could be used to fund any future negative cash flow.
Last year the mining company sought C$7.5 million (US$5.6 million) to upgrade its fleet of BlockBox bitcoin miners. The company also announced $11.8 million in financing for 5,400 machines from MicroBT in January.

UPDATE (April 16, 2021, TK UTC): Clarified Hut 8's offering would happen over a 25 month period.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Sebastian Sinclair

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Sebastian Sinclair