Canada-Based Squire Mining Set To Acquire CoinGeek In A $45.3 Million Deal
The cryptocurrency market may be in captivating doldrums but business seems to flourish. With Squire Mining set to acquire CoinGeek, the deal looks to create the largest publicly-traded crypto entity.
Based in Canada, Squire Mining manufactures application specific integrated circuits (ASICs) for cryptocurrency mining hardware.
BCH Hard fork
In August, Squire revealed CoinGeek as “the exclusive worldwide distributor of the Company’s next generation ASIC chips and mining systems currently under development.” Particularly, CoinGeek would exclusively solicit, promote, market, distribute and sell the chips to other coin miners. However, the focus would be those who mine Bitcoin Cash (BCH).
Simon Moore, Executive Chairman of Squire commented at the time that the “partnership will allow us to quickly gain a strong foothold in a fast-moving, global marketplace.”
Interestingly, Squire is going an extra mile in making a bid for the crypto-content producer. In addition, CoinGeek operates one of the largest mining pools with a certain bias to Bitcoin Cash.
However, since the controversial hard fork of the Bitcoin Cash platform, CoinGeek now focuses on Bitcoin SV. This is a product of the hard fork which some analysts blame for the spectacular fall in value of cryptocurrencies.
Asset consideration
With Squire Mining set to acquire CoinGeek, the company will take control of all its operations. This includes the numerous ASICs spread all across the North America and in Kazakhstan.
“The Assets are all operated by leading hosting providers and are allocated across the United States (35,940 rigs), Canada (6,000 rigs) and Kazakhstan (20,500 rigs). The all-in weighted average operational cost across the Assets being acquired in the Transaction is US$0.073 per kWh,” a press release reveals.
Further, part of the transaction involves CoinGeek receiving about 114.8 million common shares of Squire. This will make up asset consideration but only partially. In addition, CoinGeek voluntarily entered “one-year lock up on the common shares received.”
Squire Mining set to acquire CoinGeek with some conditions
Interestingly, the deal will see CoinGeek receive an unsecured vendor-take-back (VTB) worth approximately CAD$25.8 million. However, the firm can convert the VTB into common shares of the acquiring company.
Furthermore, the terms of the transaction allow Squire to refuse the acquisition of CoinGeek’s remaining crypto mining assets.
Commenting on the developments, Taras Kulyk, Chief Executive Officer of Squire said, “This Transaction would provide Squire with a leading, recognized brand… and it would also make us the largest, publicly traded Bitcoin miner globally.”