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Investing.com -- Hut 8 Corp. (NASDAQ:HUT) stock climbed 5.2% on Monday after the energy infrastructure platform announced it has entered into a definitive agreement to sell its portfolio of four natural gas-fired power plants in Ontario to TransAlta Corporation (NYSE:TAC).
The transaction involves a 310-megawatt portfolio owned and operated by Far North Power Corp., an entity formed by Hut 8 and Macquarie Equipment Finance Ltd. Hut 8 had previously acquired these assets out of bankruptcy and implemented operational and commercial measures to revitalize them as revenue-generating facilities.
Earlier this year, Far North secured five-year capacity contracts across the portfolio through the Ontario IESO Medium-Term 2 auction, transitioning the assets from short-term seasonal arrangements to long-term, investment-grade-backed revenue commitments.
"Our power-native team executed a disciplined program to strengthen the four natural-gas power plants comprising the Portfolio, enhancing their operational and commercial footing," said Asher Genoot, CEO of Hut 8. "With that foundation in place, we created the appropriate conditions to crystallize the value of the Portfolio for our shareholders."
The company indicated that while it maintains strategic interest in power generation, it plans to prioritize capital allocation toward large-scale digital infrastructure development opportunities. Hut 8 continues to advance a multi-gigawatt pipeline of power-first digital infrastructure development across North America.
CIBC Capital Markets acted as financial advisor to Hut 8 for the transaction, with Bennett Jones LLP serving as legal counsel.
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