On September 24, Hut 8, the world’s largest public cryptocurrency mining company based on operating capacity and market capitalization, announced to be the first company to be listed on the Toronto Stock Exchange [TSX] via TSX Sandbox.

This conditional approval by the TSX also makes it the “first blockchain or cryptocurrency company” to be listed on the exchange.

Andrew Kiguel, Chief Executive Officer of Hut 8, said that this listing plays an important role in their efforts towards improving liquidity and enhance “public disclosure to investors.” He said:

“Our move to the TSX, the senior public market of the TMX Group, is another significant step in our evolution to provide improved liquidity and enhanced public disclosure to investors,”

.@Hut8Mining announces conditional approval for graduation to Toronto Stock Exchange via TSX Sandbox! Hut 8 is proud to be the first company to be listed via TSX Sandbox and the first blockchain or cryptocurrency company to be listed on the TSX. Link: https://t.co/VfXFzXQi2z pic.twitter.com/i3EMQlOFBR — Andrew Kiguel (@AndrewKiguel) September 24, 2019

TSX Sandbox

TSX Sandbox is a listings initiative designed to facilitate applications of issuers that don’t satisfy TSX’s listing conditions at the time of the application.

Hut 8 will trade in the same manner as other companies listed on the TSX while it is a part of TSX. However, TRX requires all the companies to fit their eligibility criteria.

Once TSX grants them relief from the listing rules, Hut 8 will exit the Sandbox program. The press release stated:

“While in the TSX Sandbox program, Hut 8’s common shares will trade in the same manner as other TSX listed companies. Hut 8 will exit the TSX Sandbox program upon the receipt of a prospectus (including a non-offering prospectus), and no significant compliance issues for a 12-month period.”

Furthermore, the press release mentioned that Hut 8 is required to disclose two “risk factors”. One of the risk factors was directed towards the volatility of the cryptocurrency market, its effect on the investment, and that the value of the shares will be based on the value of Bitcoin “directly or indirectly by the Company”.

On the other hand, the other one discussed Hut 8 as a new company, and it not having much history in terms of operations.

“1. The value of the Hut 8 Shares relates directly to the value of the Bitcoins held directly or indirectly by the Company, and fluctuations in the price of Bitcoins could materially and adversely affect an investment in the Hut 8 Shares.”

2. The Company has a limited history of operations and is in the early stage of development.”

Strategic partnership

The Canada-based miner, Hut 8, partnered with Bitfury Group to expand their activities in North America and “acquire, install, maintain and operate North America’s largest bitcoin mining datacenters.” Bitfury is the world’s leading full-service blockchain company.

With industrial-scale operations in Canada, Hut 8 operates two sites in Canada with an operating capacity of 109.4 MW and 963 PH/s.

Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory.

The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.

Image courtesy of Wikimedia Commons