Squire Mining to Buy Crypto Mining Firm CoinGeek for $45 Million
Squire Mining, a Canadian ASIC chip designer, is reported to be in talks with CoinGeek over the purchasing of their entire mining operation. The buyout would see Squire Mining take over 62,440 ASIC mining devices located on sites in the US, Canada, and Kazakhstan, affording them 960,000 terahashes of mining power. The move is a brave one on Squire’s part, given that many Bitcoin mining operators are currently working at a loss or at best breaking even, especially those who own older mining equipment.
World’s Biggest Publicly-Listed Mining Firm
Squire Mining Ltd is based in Vancouver and is listed on the Canadian Stock Exchange. Founded in 2011, they are engaged in “…developing, manufacturing and selling data mining infrastructure and system technology to support global blockchain applications in the mining space…”, primarily in the manufacturing of chips for ASIC miners.
Providing it goes through, the deal would make Squire Mining the biggest publicly traded crypto mining outfit in the world. CoinGeek were recently embroiled in the Bitcoin Cash mining war, providing hash power for the Bitcoin SV project which was declared the loser by most crypto outlets.
Squire and CoinGeek began working together in August when CoinGeek became the sole distributor of Squire Mining products, and this relationship has clearly proved fruitful enough for Squire to take things one, or several, steps further. CoinGeek is owned by gambling magnate Calvin Ayre, which he purchased in 2017 to boost the Bitcoin Cash and then Bitcoin SV hash rates. Squire Mining CEO Taras Kulyk said of the buyout:
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.
It is assumed that Squire Mining will realign the operation with the values of Bitcoin core rather than any of the spin offs. This means that Kulyk and Squire will be pinning their hopes on a swift Bitcoin recovery to make their investment worthwhile.