Squire Mining Ltd., a Canada-based publicly listed company, announced its agreement to acquire crypto mining assets owned by CoinGeek and its associates. This will be the founding stone of the largest publicly-owned crypto mining operation in the world known as CoinGeek Technologies Ltd, reported CoinGeek.
Taras Kulyk, chief executive officer at Squire, said:
“This transaction would provide Squire with a leading, recognized brand via the acquisition of the CoinGeek.com and CoinGeek name, but it would also make us the largest, publicly traded Bitcoin miner globally. It is expected to deliver significant shareholder value by enabling Squire to become vertically integrated with our growing chip design and manufacturing business, which we would seek to have commercial within 2019.”
Under the agreement, Squire will undertake CoinGeek’s assets, including 62,440 ASIC mining rigs, representing an estimated 960,000 terahash or approximately 90 MW of power consumption. According to CoinGeek, these assets are operated by leading host providers across the United States [35,940 rigs], Canada [6,000 rigs], and Kazakhstan [20,500 rigs].
The all-in weighted average operational cost of the assets being acquired in the deal is US $0.073 per kilowatt hour.
The value of the deal is CAD $60.3 million [US $45.33 million]. It consists of an 11.8 million Squire common shares equivalent to CAD $34.4 million [US $25.86 million] as per the closing price of CAD per share on November 29.
According to CoinGeek, it will also receive an unsecured vendor-take-back note worth CAD $25.8 million [US $19.4 million]. This could be converted into additional Squire common shares.
CoinGeek has agreed into a voluntary lock up on the common shares it received.
Squire has agreed to the deal to take on ConGeek’s employees and consultants who are a part of the management and operation of the assets. It will also take on CoinGeek.com website and domain, along with marketing and advertising assets related to the company.
Squire will also be acquiring CoinGeek’s outstanding global distribution agreement for Squire’s ASIC chips and rigs. The Canadian company had previously granted exclusive rights to CoinGeek to promote, market, sell, solicit and distribute its new ASIC chips and mining rigs to Bitcoin SV along with altcoin miners all over.
Calvin Ayre, the owner of CoinGeek brand, said:
“I believe the next phase of growth for this industry is upon us and that means massive scaling of the Bitcoin blockchain to accommodate the throughput needed for enterprises to make use of this technology. By vending my mining and CoinGeek branded assets into Squire, I would be doubling-down on my commitment to Bitcoin’s success. These assets would enable Squire Mining Ltd to compete at a global level to pave a path for enterprise usage of blockchain technology to flourish.”
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