HyperBlock acquired CryptoGlobal providing the firm control of cryptocurrency mining stick and thousands of mining rings. The deal was revealed earlier this week and involves HyperBlock purchasing all issued and outstanding shares of CryptoGlobal.
Hopes are that the deal will be completed as soon as possible and the expected date is set somewhere around the end of May 2018.
The companies plan to operate together under the name HyperBlock Technologies Corp.
The agreement is worth approximately $106 million
This deal was approved in unanimity by CryptoGlobal board of directors. The terms of this agreement include the fact that HyperBlock will issue 0.4229 of a common share of HyperBlock for each CryptoGlobal common share, valuing each CryptoGlobal common share at $0.74, a 48% premium on the closing price of CryptoGlobal shares at $0.50 on 29 March 2018.
This deal is worth about $106 million.
HyperBlock and CryptoGlobal combine forces
HyperBlock is based in Toronto, Canada and they offer a vast range of cryptocurrency-related services that include self-mining, server hardware sales, server hosting, and Mining-as-a-Service. CrytoGlobal is another company from Canada that provides mining equipment and services. Its current focus is mining DASH, Bitcoin, Litecoin, and Ether.
Sean Walsh, the founder of HyperBlock, will become the CEO of the combined company and Rob Segal and James Millership, the co-founders of CryptoGlobal together with Chris McGarrigle, founder of Blockchain Dynamics will also join the management team.
“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,” Walsh stated.
“We are poised to become a global leader and consolidator in cryptocurrency mining and asset management.”
The resulting company will mine cryptocurrencies in Canada and the US
HyperBlock Technologies is set to operate 21.000 mining servers, and it will use 28 MW of power to mine cryptocurrencies in Canada and the US.
HyperBlock says there’s enough potential to extend to more than 90 MW shortly. The company will offer server hosting, MAAS, self-mining, cryptocurrency storage and trading, self-mining, server sales, and a “SaaS-based cryptocurrency insights platform.”