Ionic Digital, Inc. announced the termination of its Amended and Restated Management Services Agreement with U.S. Data Management Group, LLC, a subsidiary of Hut 8 Corp. The notice was provided on November 26, 2024, with the termination taking effect on December 10, 2024.
The agreement was terminated without the incurrence of the $22.5 million termination fee, which could have provided a financial offset. This means Hut 8 will no longer provide managed services to Ionic Digital's Bitcoin mining sites.
This termination represents a loss of a revenue stream for Hut 8's Managed Services segment. The company will need to reallocate resources or find new clients to offset the impact of this agreement's conclusion.
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