Leading Canadian cryptocurrency mining firm Hyperblock Technologies Corp. has announced that it is set to acquire a fellow industry player, Toronto-based CryptoGlobal, in a deal worth $106mn.
The acquisition will see Hyperblock paying $0.74 per CryptoGlobal share, equating to a 48% premium on the company’s unaffected share price, as of 29 March, of $0.50.
“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,” said Hyperblock CEO Sean Walsh. “We are poised to become a global leader and consolidator in cryptocurrency mining and asset management.”
The combined company will operate over 21,000 combined operation crypto mining servers using its 28MW of existing utilization, with the potential ability to grow to over 90MW.
As part of the deal, CryptoGlobal’s Cofounders Rob Segal and James Millership will be placed in leadership roles at the combined company, with Segal also set to be appointed to Hyperblock’s Board of Directors.