Canada’s HyperBlock to Acquire CryptoGlobal for C$106M
Canadian cryptocurrency mining company HyperBlock announced that it entered a purchase agreement with CryptoGlobal, another crypto mining firm.
Canadian crypto mining company HyperBlock Technologies Corp announced that it would buy crypto-currency mining firm CryptoGlobal. The acquisition deal reaches C$106 million ($83 million). If it succeeds, the deal will become one of the largest in the cryptocurrency market.
Sean Walsh, CEO at HyperBlock, commented on the acquisition in an interview with Reuters:
“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.”
He stated that HyperBlock recently acquired one of the largest crypto mining firms in the US and North America. The upcoming deal with Toronto-based CryptoGlobal, which currently revolves around mining Bitcoin, Dash, Ethereum, and Litecoin, will consolidate HyperBlock’s position as a key player in the crypto mining space.
“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 added.
According to the acquisition agreement, HyperBlock will pay C$74 for each CryptoGlobal share, which is 48% premium to the close price on Thursday, March 29, when CryptoGlobal’s stock was valued at C$0.40.
HyperBlock plans to release about 60.4 million common shares to CryptoGlobal shareholders. By the time when the deal closes, the latter will own approximately 25.2% of the combined firm.
After the deal succeeds, HyperBlock wants to be listed on the Canadian Securities Exchange, which is expected to take place at the end of May. On a side note, The Canadian Securities Exchange announced in February that it would build a blockchain-powered platform for securities clearing and settlement – the first platform of its kind in Canada.
The new combined company will have Sean Walsh as CEO, and CryptoGlobal co-founders Rob Segal and James Millership and Blockchain Dynamics founder Chris McGarrigle as top executives. Segal will join HyperBlock’s board of directors.
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