Canadian cryptocurrency services provider HyperBlock Technologies Corp is acquiring another mining firm in the country CryptoGlobal. Reuters reported on April 4th that HyperBlock had opted for an all-stock deal worth $82.8 million (C$106 million) to merge the interests of both countries and provide stronger developments in cryptocurrency mining.
The deal was finalized by the board members of both companies and is expected to close by May 2018. HyperBlock CEO, Sean Walsh, said, “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.”
Walsh will become the CEO while CryptoGlobal co-founders Rob Segal and James Millership will assist him in providing guidance for the new company. Walsh explained the advantages of this venture in the future, “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.”
What to Expect in the Future?
The upcoming merger will lead to more than 21,000 operational mining servers of both companies spread out in the USA and Canada. Products and services offered will include server hosting, mining-as-a-service hashrate rentals, crypto custodial storage, and trading, among others. Currently, CryptoGlobal offers mining operations for Bitcoin, Dash, Ether and Litecoin.
Walsh will have the highest number of shares (16.7%) in the resulting company. The completion of the deal will require HyperBlock to purchase C$0.74 per CryptoGlobal common share, which will eventually add up to C$106 million. CryptoGlobal, on the other hand, will get 0.4229 of a HyperBlock common share per CryptoGlobal share they hold, with a total of 60.4 million being offered by HyperBlock. According to CryptoGlobal’s official statement, “Upon closing of the Transaction, CryptoGlobal shareholders will own approximately 25.2% of the combined company.”