After CoinGeek Acquisition, Squire Creates World’s Largest Publicly-Owned Crypto Mining Operation
Via an announcement made earlier on Friday, a spokesperson for Squire Mining Ltd., stated that his firm had signed an official agreement to acquire all of the crypto mining assets that are currently owned by CoinGeek (as well as by all of its affiliates).
As a result of this acquisition, Squire has effectively become the world’s largest publicly-owned crypto mining operation in the world.
Details Of The Deal
As per some of the documents that have been released in relation to this deal, it is stated that Squire will now have under its control a total of 62,440 ASIC mining rigs that were previously part of CoinGeek’s digital arsenal. To put things into perspective, these mining rigs represent a total of 960,000 terahash/s (which roughly translates to around 90 MW of power). Lastly, these rigs are powered and operated by different hosts who are spread across the world in countries such as the US, Canada and Kazakhstan.
In terms of how much this deal is worth, it is estimated that for the above mentioned agreement to go through, Squire had to shell out a total of CAD$60.3 million (US$45.33 million). The deal also consisted of 114.8 million Squire common shares worth CAD$34.4 million (US$25.86 million).
If that wasn't enough, as part of the deal, it is being reported that CoinGeek will receive an an unsecured vendor-take-back note worth CAD$25.8 million (US$19.4 million). This promissory note can be be converted into additional Squire common shares in the future.
More On The Matter
According to the terms of the agreement, it is being said that after the remaining paperwork concludes, Squire will bring onboard all of CoinGeek’s existing employees and consultants who are presently involved with the company (i.e. in whatever capacity possible).
In this regard, Calvin Ayre, Owner of the CoinGeek brand name said:
“I believe the next phase of growth for this industry is upon us and that means massive scaling of the Bitcoin blockchain to accommodate the throughput needed for enterprises to make use of this technology. By vending my mining and CoinGeek branded assets into Squire, I would be doubling-down on my commitment to Bitcoin’s success. These assets would enable Squire Mining Ltd to compete at a global level to pave a path for enterprise usage of blockchain technology to flourish,”
For those who may not remember, earlier this year, Squire entered into a deal with CoinGeek which allowed the firm and its associates to market, promote, solicit, sell and distribute Squire’s new ASIC chips and mining rigs to crypto miners around the world.
Talking about his company’s latest decision, Taras Kulyk, CEO of Squire, was quoted as saying:
“This transaction would provide Squire with a leading, recognized brand via the acquisition of the CoinGeek.com and CoinGeek name, but it would also make us the largest, publicly traded Bitcoin miner globally. It is expected to deliver significant shareholder value by enabling Squire to become vertically integrated with our growing chip design and manufacturing business, which we would seek to have commercial within 2019.”