The Ontario Superior Court of Justice has granted an Approval and Vesting Order, marking a pivotal step in Hut 8’s endeavour to acquire four natural gas power plants. This includes the notable North Bay Bitcoin mine, solidifying Hut 8’s position as a major player in North American digital asset mining and cutting-edge computing infrastructure.
The court’s Approval and Vesting Order greenlights the stalking horse bid transaction, strategically crafted by Hut 8 with support from Macquarie Equipment Finance Ltd., a subsidiary of the globally renowned Macquarie Group Limited.
Should the transaction successfully navigate the closing conditions, a new Ontario-based entity, “BidCo,” will emerge as the owner of VPC’s assets and key holdings of Validus Entities. BidCo is set to acquire four natural gas power plants across Ontario, unencumbered except for specific allowances. These include a 40 MW plant in Kapuskasing, Kingston’s 110 MW plant, a 120 MW plant in Iroquois Falls, and North Bay’s 40 MW plant, along with the highly sought-after Bitcoin mine.
Macquarie’s Stake in BidCo
Upon completion, Macquarie and BidCo will establish a secured funding arrangement via an operating lease facility. Macquarie is set to receive a 20% minority equity interest in BidCo, with Hut 8’s subsidiary retaining the majority share of approximately 80%.
The anticipated completion of the transaction by February 15, 2024, signals not just a shift in ownership but the end of legal disputes between Hut 8 and select Validus Entities. With regulatory hurdles in sight, this acquisition is poised to reshape the landscape of Ontario’s energy sector.
