Bitfury, an Amsterdam based Bitcoin mining hardware manufacturer, has set out to sell its stake in Hut 8, a stock listed on the Toronto Stock Exchange.
Bitfury is set to sell 37,226,958 shares of Hut 8 as per the notice filed. The company procured more than 40 million shares of Hut 8, a mining company, and is selling the leftover 38 percent stake.
Bitfury Selling of its stakes in Hut 8
As per the notice of intention filed by the company, Bit fury wants to distribute its securities by selling its shares of Hut 8 worth $56.6 million; the company sold off 4 million shares in September this year as part of the ‘Strategic commercial agreement with a third party.’
The notice filed by Bit fury does not elaborate on how it would sell the shares, whether through an exchange or privately. The two companies came together in December 2017 when they launched Bitcoin mining centers across North America, with Hut 8 touted as the proxy for the Amsterdam based Bitfury in the North American region.’
Hut 8 is a mining company having more than 96.73 outstanding shares, which are trading at $1.52 after its shares dropped by 12 percent this month.
In the last few weeks, Hut 8 reported a decline of 43 percent in its Q3 mining revenue, hitting a massive low of $4 million. However, the firm said that it is going to increase its hash power to tap into the increasing price of Bitcoin. The revenue of the firm also dropped massively by 80 percent during the same period last year.
Hut 8, a publicly listed bitcoin mining company on the Toronto Stock Exchange, last week proposed to onboard two new board members. With industrial-scale operations in Canada, Hut 8 provides bitcoin mining facilities and provides direct bitcoin exposure to its clients and investors who do not have technical expertise in blockchain. The firm generates value for the investors by creating low production costs and maintaining bitcoin inventory. The Bifury- Hut 8 alliance now takes a backseat.
Last month Bit fury announced a partnership worth $35 million with the LIAN group portfolio company to launch Mining as a Service. The project is aimed to develop the new business line with the offering of a mining site in Norway.
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