Canada's HyperBlock to Buy Crypto-Currency Mining Firm for C$106 Million
Canadian technology company HyperBlock Technologies Corp said it reached an agreement to acquire crypto-currency mining firm CryptoGlobal Corp in an all-stock deal valued at C$106 million.
Some market participants said the deal, announced late on Tuesday, is one of the larger acquisitions in the crypto-currency space, which has struggled for further momentum after sharp price gains late last year amid increased scrutiny by government regulators around the world.
CryptoGlobal currently focuses on mining Bitcoin, Dash, Ether and Litecoin.
“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,” Sean Walsh, chief executive officer at HyperBlock, told Reuters in an interview on Wednesday.
HyperBlock said the acquisition is expected to add to its cash flow over the next 12 months.
Walsh will be CEO of the new company, with CryptoGlobal co-founders Rob Segal and James Millership and Blockchain Dynamics founder Chris McGarrigle joining him to lead the company, HyperBlock said. Segal will also join HyperBlock’s board of directors.