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Canadian Firm Squire Mining Set to Acquire CoinGeek in $45 Million Deal

Reading Time: 2 minutes by on December 3, 2018 Bitcoin, Blockchain, Finance, News, Platform, Tech
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According to an article published by Finance Magnets, dated December 3, 2018, Canadian firm Squire Mining is set to purchase CoinGeek, a cryptocurrency news website, and mining pool operator.

Acquisition Cost Close to $45.3 Million

Based out of Vancouver, Canada, Squire Mine is an ASIC chip designing firm with a total market cap of $35.4 million. The firm’s shares are traded globally on some exchanges, thus making this deal all the more important as it has created the world’s largest publicly traded crypto mining operating concern.

Notably, the Chinese cryptocurrency mining behemoth Bitmain is still awaiting approval to go public in Hong Kong. Having a valuation of close to $18 billion, Bitmain plans to raise about $3 billion through its initial public offering, thus making it one of the most anticipated IPOs of recent times.

Earlier in August 2018, CoinGeek and Squire Mining entered into a partnership which resulted in the former becoming the sole distributor of the latter’s products. However, according to the latest development, Squire Mining will take control of CoinGeek’s operations and employees. Further, the ownership of 62,440 ASIC mining devices will also be transferred to the Squire Mining. These devices are said to be located on sites in the U.S., Canada, and Kazakhstan.

Per the documents made public by the company, the ASIC machines possess a combined hashrate of close to 1 million terrahashes per second.

It is estimated that the total cost of acquisition will cost Squire Mining close to $45.3 million.

The Largest Publicly Traded Bitcoin Mining Entity

CoinGeek’s billionaire CEO Calvin Ayre, one of the proponents of the controversial Bitcoin Cash (BCH) spin-off Bitcoin Satoshi’s Vision (BSV) started the company’s mining operations in January 2018. Although it initially supported the Bitcoin Cash blockchain, after the infamous November 15 hard fork, CoinGeek shifted its focus to the newly christened BSV.

Regarding the multi-million acquisition by Squire Mining, Ayre stated:

“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.”

Similarly, Squire Mining CEO, Taras Kulyk, shared his thoughts on the deal saying the acquisition would make the Vancouver-based company the world’s largest publicly traded bitcoin mining entity.

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