One of the biggest deals in crypto mining history was sealed this week when Canadian miners HyperBlock purchased mining firm CryptoGlobal in a deal worth CAD 106 million (USD 83 million).
The stock-based acquisition sees CryptoGlobal shares purchased at USD 0.74 a piece, over 40% higher than the current market OCT prices. With HyperBlock’s new acquisition, the company, one of the largest in North America, plans to list with Canadian exchanges on completion of the deal. CryptoGlobal investors will be reimbursed by HyperBlock with the newly-merged companies shares.
HyperBlock is a cryptocurrency mining company that currently operates the Sector 14 cryptocurrency mine within the Project Northwest mining facility. The company maintains that it has a “rapid growth strategy” and has signed a definitive agreement to acquire its co-location partner Project Northwest, which is one of North America’s largest facilities.
The impact of the merger with Toronto-based CryptoGlobal will make a significant impact on its new owners as it will make HyperBlock one of the largest players in the market of outsourced mining. CryptoGlobal currently mines Bitcoin, Ethereum, Litecoin and Dash. HyperBlock CEO Sean Walsh commented that the combination of one company’s service model and the other’s mining and crypto trading prowess would “create a strong foundation for both organic growth and growth through acquisition”.
In addition to cryptocurrency mining, HyperBlock is now currently active in the server hosting market, allowing the company to profit from engaging with multiple different sectors, thereby diversifying risk. Its aim is now to become the western world’s largest crypto mining power through further expansion.
Mining as a service has become increasingly popular for those unable to afford a rig or who don’t have the power resources to run one. Estimates are that there are over 100,000 people globally who contribute to the cryptocurrency mining network. The highest share of the total mining resources is commercial enterprises. Digiconomist’s Bitcoin Energy Consumption Index reports that Bitcoin’s current estimated annual electricity consumption is 29.05 billion kilowatt-hours, more than the total electricity consumption of 159 countries.
