Canadian block reward mining firm Hut 8 (TSX:\u00a0HUT|OTCQX:\u00a0HUTMF) has filed documents with securities regulators, ahead of a proposed issue which could see the company raising as much as CAD$500 million (US$401.36 million) from investors.<\/p>\n
The Toronto-listed firm filed a preliminary base shelf prospectus with each of the regulatory bodies in Canada\u2019s provinces and territories, as well as filing a Form F-10 shelf registration statement with the U.S. Securities and Exchange Commission (SEC).<\/p>\n
The U.S. filing was submitted in accordance with the U.S.\/Canada Multijurisdictional Disclosure System, which enables Hut 8 to extend its securities offering to investors in the U.S., as well as those based in Canada.<\/p>\n
When finalized, the filings will allow Hut 8 to make available securities and other instruments up to the value of CAD$500 million, which is set to include a mix of shares, debt securities, convertible securities and other instruments, over a 25-month period.<\/p>\n
The funds are expected to help finance the company\u2019s ongoing growth, as it continues to benefit from surging prices in core digital currency markets.<\/p>\n
Future offerings will also become available via a prospectus supplement, which can be filed with the Canadian securities authorities and their U.S. counterparts in the SEC respectively.<\/p>\n
The registration has not yet come into effect, and no securities are yet available for sale. However, it is expected that the filing will get the go-ahead from regulators in due course, allowing Hut 8 to offer out its new securities to investors.<\/p>\n
The move comes off the back of strong performance across the mining sector, fueled by the surge in digital currency prices. Similar to other mining firms, Hut 8 has seized the opportunity to turn to investors for new capital, as it plans further expansion of its operations.<\/p>\n
See also: TAAL\u2019s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin \u201cMiners\u201d to \u201cTransaction Processors\u201d<\/p>\n