Hut 8 Slides 6% as Poolin Reruns Auction for $180M Bid
HUT has more than doubled off its 52-week low of $31.67.
Summary
Hut 8 shares fell 6.34% to $86.97 on Wednesday, breaking below both the 20-day and 50-day moving averages. The drop follows Tuesday's Form 144 filing showing director Michael Ho plans to sell 1.5 million shares worth about $139 million through a prepaid forward agreement. Separately, bankrupt crypto miner Poolin will rerun the auction for its Texas data center sites, the process that produced Hut 8's $180 million bid. The redo introduces uncertainty around Hut 8's winning bid from September 23. Traders will watch whether the stock holds the 200-day moving average as the next support level.
Updates
· Binance News — Court approved reopening bidding; auction set for Oct 2, bids due Oct 1; Hut 8 stalking horse with up to $180M deal.
- Deal Terms — Hut 8's deal includes $100 million in cash at closing and up to $80 million in milestone payments tied to future data center transactions. Milestone payments depend on qualifying data center leases and development using acquired power resources, including facilities for AI, high-performance computing, cloud computing, colocation, but exclude facilities primarily used for crypto mining.
- Breakup Fee — Hut 8 receives a $3 million breakup fee and $250,000 in expense reimbursement if another buyer completes the transaction.
- Court Findings — Court found reopened bidding process was sound business judgment aimed at maximizing creditor value, and Hut 8 and its affiliates acted in good faith during earlier bidding process.
All 9 details
- Hut 8's deal includes $100 million in cash at closing.
- Up to $80 million in milestone payments are tied to future data center transactions.
- Milestone payments depend on qualifying data center leases and development using acquired power resources.
- Milestone payments include facilities for AI, high-performance computing, cloud computing, colocation.
- Milestone payments exclude facilities primarily used for crypto mining.
- Hut 8 receives a $3 million breakup fee if another buyer completes the transaction.
- Hut 8 receives $250,000 in expense reimbursement if another buyer completes the transaction.
- Court found reopened bidding process was sound business judgment aimed at maximizing creditor value.
- Court found Hut 8 and its affiliates acted in good faith during earlier bidding process.
At the time of this announcement, HUT was trading at $88.18 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $10.9B. The 52-week trading range was $31.67 to $140.80. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.