Hyperblock, owners of one of the largest US-based mining farms have agreed to acquire Canadian cryptocurrency giant Cryptoglobal. Hyperblock will acquire Crypotoblock for $0.74 for each share representing a total equity value of approximately $106 million. The acquisition price is over 40% higher than the current market price of the shares by over 40%.
Hyperblock technologies are reimbursing Cryptoglobal investors in the form of 60.4 million common shares which accounts for 25% of the shares of the newly merged company.
Sean Walsh, the CEO of Hyperblock commented: “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. We are poised to become a global leader and consolidator in Cryptocurrency mining and asset management.”
Sean Walsh will continue being the CEO of the company while Cryptogolbal’s founders, Rob Segal and James Millership are set to join Walsh as top executives in the company.
The combined company has a lineup of over 21,000 miners using 28 MW of power across multiple locations in North America. Hyperblock operates a 20 MW mining facility in the US, which has a capacity of 80 MW. This accounts for 10 Petahashes of Bitcoin mining power or equivalent to 750 Antminer S9s. Cryptoglobal currently operates across multiple facilities in Canada, totaling 9 MW of power.
The deal is one of the biggest in Crypto mining history and allows hyperblock to become even bigger and aggressive in the market. Critics have said that measures like this are not good for the ecosystem of cryptocurrency.