North Americaâ€™s largest bitcoin mining firm will soon trade publicly on Canadaâ€™s premier stock exchange.
On October 9, 2019, Hut 8 will officially begin trading on the Toronto Stock Exchange (TSX). Before graduating to the largest stock exchange in Canada, Hut 8 was listed on the Canadian Venture Exchange, a smaller public exchange for emerging businesses which operates under the same umbrella as the TSX.
“The TSX is the fourth-largest exchange in North America and one of the largest in the world. Being listed on the TSX will broaden the investor audience for Hut 8 and the hope is that will lead to more investor interest and liquidity for the shares,” Hut 8 CEO Andrew Kiguel told Bitcoin Magazine.
TSX Sandbox Leads to Bitcoin Listing
This listing comes as part of TSXâ€™s sandbox program which permits unconventional companies to earn a seat at the worldâ€™s ninth-largest stock exchange without having to endure all of the usual registration requirements. A company that specializes in bitcoin mining is about as unconventional as it gets, and by the same token, Hut 8 is the first Bitcoin-focused company to hit the exchange.
“The TSX Sandbox program was created to help companies that donâ€™t fit traditional listing criteria, but merit a listing on the senior exchange based on other criteria,” Kiguel said. “Hut 8 already met most of the listing requirements, yet as part of a new industry, we did not meet a few of the traditional requirements. The Sandbox program enabled us to work with the TSX to establish criteria under which we could get listed.”
The companyâ€™s ticker will remain the same (conveniently, HUT). In addition to the TSX, Hut 8 also trades on the New York-based, OTC securities trading desk OTC Markets Group as HUTMF.
A Bitcoin Mining Comeback Kid
Hut 8 was established as part of “an exclusive partnership with the Bitfury Group,” the Dutch bitcoin mining and technology company. According to Hut 8â€™s website, it has mined over 10,000 bitcoin to date across 94 mining centers operating in Alberta, Canada. Tapping into a variety of renewable energies, these data centers can produce 963 petahashes per second and consume 109.4 megawatts of energy.
As of this writing, Hut 8â€™s stock price is trading for $1.52 with 90.3 million shares outstanding. The stock leapt to an all-time high on the Toronto Venture Exchange in March 2018 at $4.70 a share, but then the market bottomed out at the end of the year — ushering in a particularly brutal business climate for mining companies. And Hut 8 was no exception as its valuation backslid with the market, falling to $0.81 in March 2019, almost a year to the day since it hit its all-time high. This dive, which wiped Hut 8â€™s stock by more than three-quarters of its valuation, took half of the companyâ€™s workforce with it as Hut 8 moved to restructure.
With this new listing, however, Hut 8 will look toward future growth as its stock rebounds alongside its revenue flow (the second quarter of 2019, for example, brought in roughly $30 million in revenue for the company). Kiguel told Bitcoin Magazine that, in a bid to increase shareholder value, Hut 8 plans to increase its mining capacity, seek out more efficient and cheaper electricity sources and “[h]old a significant inventory of bitcoin for appreciation.”
The post Canadian Mining Firm Is First Bitcoin Company to Hit Toronto Stock Exchange appeared first on Bitcoin Magazine.
Via: Canadian Mining Firm Is First Bitcoin Company to Hit Toronto Stock Exchange
A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.
Blockchain 101 · Crytpo Currency Market
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange