On 3rd April 2018, Crypto Global, a mining company released an official announcement that the company will be acquired by HyperBlock Technology Corp, a Toronto based blockchain, and financial technology company.
HyperBlock will acquire all of the issued and outstanding common shares of CryptoGlobal by way of an acquisition arrangement. Post the acquisition, the combined company will operate under the name ‘HyperBlock Technology Corp’. The transaction is set to be completed by the end of May 2018 post meeting with shareholders of both the firms. The deal is valued at $106 million.
Hyperblock CEO, Sean Walsh says:
“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.”
According to the press release, Sean Walsh will be the CEO of the combined firm and will be part of the Board of Directors of the combined company. The Founders of both the firms will assist Sean in leading the firm.
Once the acquisition is completed, the combined company will have the following:
- More than 21000 operational servers
- Experienced management team
- Will have an ability to grow to over 90 MW with 28 MW of existing utilization
- Business model and vision which includes mining as a service hashrate rental, self-mining, server hosting, SaaS crypto insights platform, server sales and crypto custodial storage and trading.
Jullian Steves, a Blockchain Entrepreneur, and Consultant says:
“If this acquisition happens, then the projects they can come up with will be helping everyone across the globe. It literally is going to be a win-win situation for both the parties and the ones who will be gaining the most will be its customers.”
According to the agreement, the shareholders of CryptoGlobal will receive 0.4229 common shares of HyperBlock in exchange for one CryptoGlobal common share. Approximately 60.4 million common shares of HyperBlock will be issued to CryptoGlobal shareholders.
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