Hut 8 is a popular Bitcoin miner in Canada. According to recent news, Hut 8 has become the first cryptocurrency company to be listed on the Toronto Stock Exchange (TSX).
In April, a sandbox program of TSX helped other companies to access the exchange by excluding some requirements from the listing requirements.
The chief executive of Hut 8, Andrew Kiguel, said that their company would be the first company to go through the sandbox program. After the TSX Venture, they will start trading on the Toronto Stock Exchange on October 8, 2019. He continued that they are happy and proud to be the first approved crypto-blockchain company for the Sandbox project and first on the list of the Toronto Stock Exchange.
Kiguel said that Hut 8 is satisfying all the listed requirements of the board except one thing, i.e., raising funds from a public prospectus. He knows that the company has already raised funds of $140 million via private placements and debt.
The company operates a few data centers in Alberta. These centers earn Bitcoin by sophisticated methods that verify the transaction and secure the system. According to Andrew, the name of the company on the leading exchange will help their company attract many investors worldwide.
He continued that being listed will widen the platform for the audience of investors. There are many institutions and people that are not comfortable investing in the TSX Venture Exchange. The company’s value is inconsistent, like the Bitcoin price.
Last year, Hut 8 traded at $5, but after a share dip, it fell to 76 cents low. In 2017, there was a drop in the price of Bitcoin, which led to the depreciation of the company. After that, the company responded by negotiating the contracts again, removing the staff members, and cutting down all the other costs.
On June 30, Bitcoin prices recovered after Facebook’s initiative in cryptocurrency. There was a profit of $34.3 million for the quarter. Now, Hut 8 trades at $2 per share.
According to Kiguel, Bitcoin is still struggling as a daily currency. He is expecting evolution when Bitcoin leads not just for institutional, traditional firms but also for financial firms.
