Hut 8 (HUT) and U.S. Bitcoin are the latest crypto miners rushing to take advantage of the ꦰJanuary Bitcoin rally.

Two firms announced their merger Wednesday, the latest deal in a wave of consolidation and balance sheet shuffling from battered miners still struggling with losses from last year. The new company would combine the two firms' resources and create a new 澳洲幸运5开奖号码历史查询:crypto-mining giant named Hut 8 Corp.

Also referred to as "New Hut," the transaction will create a company that is listed on both the Toronto Stock Exchange and the Nasdaq. The companies said that the combined firm will have a 澳洲幸运5开奖号码历史查询:market capitalization of $990 million and will be owned by shareholders of both firms.

"New Hut will have access to approximately 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations," the companies said in a press release.

The deal is expected to establish New Hut as a large-scale, publicly traded Bitcoin miner that can strengthen its 澳洲幸运5开奖号码历史查询:balance sheet and gain access to 澳洲幸运5开奖号码历史查询:capital-raising opportunities.

“This transaction has given us the opportunity to leverage the significant, unencumbered Bitcoin stack we have HODLed to date,” said Jaime Leve🔯rton, CEO of Hut 8. “During the interim period, we plan to cover our operating costs through a combination of selling the Bitcoin we mine, selling from our stack, and/or exploring various debt options."

Hut 8 stock fell 8.6🌃% in Tuesday trading after the merger announcement.

Crypto Miners Rush to Restructure Debt

While some miners have been able to buy new mining rigs and sites at 澳洲幸运5开奖号码历史查询:firesale prices during bitcoin's 🎐downturn, others have been forced to file for bankruptcy or restructure.

Austin's Core Scientific (CORZ) filed for bankruptcy in late December. Greenridge Generation Holdings (GREE) announced 澳洲幸运5开奖号码历史查询:debt restructuring with its creditors in late January and on Wednesday Pennsylvania's Stronghold Digital (SDIG) did the same.

Hut 8 is just the latest in a wave of recent miners that have rushed to take advantage of the January Bitcoin rally. Las Vegas, Nevada-based, Marathon Digital Holdings (MARA) announced last week it would sell 1,500 BTC in a move the company said would help to fund operating costs.

“Marathon may continue to sell a portion of its Bitcoin holdings in future periods to support monthly operations, manage its treasury, or for general corporate purposes,” the company said in a statement.

The Bottom Line

The Bitcoin mining industry has been on the ropes ꦅsince the decline in crypto assets started last year. The recent rally has allowed some much-neede✤d balance sheet restructuring.

However, there is a risk that the rush to sell holdings of the world's largest cryptocurrency could impact its price. Texas-based miners have already faced another headwind in late January with a recent winter storm in the state forcing miners in the area to scale back their production.