Canadian cryptocurrency mining company HyperBlock Technologies Corp revealed that it’s acquiring CryptoGlobal, a Canadian blockchain and financial company that mines a range of cryptocurrencies. The acquisition came in at an impressive $135 million USD.
Sean Walsh, CEO at HyperBlock, told Reuters:
“Our aim is to become a comprehensive direct-to-consumer crypto company, offering products and services to the mainstream customer for making and managing their crypto-asset investments.”
A Combined Portfolio of Over 21,000 Servers
The Toronto-based technology company is paving its way to becoming one of the leading crypto companies in North America. According to the agreement, it was an all-stock deal where HyperBlock would purchase CryptoGlobal’s shares at 0.74 cents each. With the purchase, CryptoGlobal shareholders will receive about 60.4 million common shares from HyperBlock. Current CryptoGlobal shareholders will own 25.2 percent of the joint company. The combined venture will further be listed on the Canadian Securities Exchange.
The aforementioned Walsh noted:
“Combining HyperBlock’s large-scale mining-as-a-service model with CryptoGlobal’s existing mining, custodial storage, and crypto trading businesses creates a strong foundation for both organic growth and growth through acquisition.”
The combined company will have an operating power of 28 MW, out of which 20 MW is from HyperBlock’s mining facility in the Pacific North West of the United States and 8 MW is from CryptoGlobal’s own mining facilities. The partnership will have 21,000 servers working under one name — HyperBlock Technologies Corporation.
Walsh will remain CEO of the new company, while CyberGlobal co-founders Rob Segal and James Millership will assist Walsh in operating the company.
The Wave of Acquisitions Continues in Crypto Space
Just a week before, CryptoGlobal acquired Blockchain Dynamics, a crypto trading and custodian services platform.
Referring to the Blockchain Dynamics acquisition, CryptoGlobal President James Millership said:
“This strategic acquisition strengthens the company’s vision to build a leading FinTech company, underpinned by a diversified cryptocurrency mining operation with an ecosystem that includes custodial, crypto trading and insights.”
The crypto market has seen a slow progress in the first quarter of 2018 after skyrocketing last year. Yet it has been a good quarter for noteworthy accusations in the sector. In February, in a high-profile acquisition deal, Circle purchased leading crypto exchange Poloniex for $400 million.
Recently, leading Japanese brokerage company Monex Group offered to take control over Coincheck, one of the leading crypto exchanges in Japan.
Will HyperBlock benefit from the agreement as cryptocurrencies tend to be hyper-volatile in nature? Let us know your views in the comments section.
Images via Yahoo Finance, hightech.fm