Hut 8 Mining Corp. (TSX: HUT) is looking to build itself a computing platform. The blockchain firm announced today that it has signed a definitive agreement to acquire the cloud and colocation data center business of TeraGo Inc.
The transaction has a price tag of $30 million, which is expected to be financed from the firm’s cash on hand.
The acquisition will involve TeraGo’s five data centers across the country covering over 36,000 square feet of geo-diverse data center space. The properties collectively have a total of 4.1 MW saleable power capacity.
The firm outlined the benefits of the acquisition, including diversifying its profile by establishing a high-performance computing platform, access to 400 commercial customers which enables the firm as “the only digital asset miner with enterprise-grade data center capabilities,” and accelerates its HPC and GPU capacity.
“The acquisition of this complementary business diversifies Hut 8’s operations with a discrete, steady cash flow, that is uncorrelated to digital asset mining,” said CEO Jaime Leverton. “This acquisition also puts us at the forefront of the accelerated digitization of industry, establishing us as the bridge between traditional and nascent iterations of high-performance computing.”
The company said it will be retaining all of the current employees of the data center business.
The transaction has already been approved by the companies’ boards and is expected to close by Q1 2022.
Hut 8 Mining Corp. last traded at $7.58 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
