Photo: The Canadian Press

Canadian cryptocurrency company Hut 8 Mining Corp. says it has signed a deal to merge with U.S. Data Mining Group Inc., the company behind US Bitcoin Corp.

Under the agreement, the combined company will be named Hut 8 Corp. and will be an U.S.-domiciled company.

The deal will see shareholders of Hut 8 receive 0.2 of a share in the combined company for each Hut 8 share they own, while shareholders of USBTC will receive 0.6716 of a share in the new company for each USBTC share they hold.

Ownership in the new company will be about evenly split between the existing Hut 8 and USBTC shareholders.

The aggregate consideration implies a combined market capitalization of about U$990 million.

The deal requires approval by shareholders of both Hut 8 and USBTC as well as regulatory and court approvals.