The move was first announced on November 30, with the two parties signing a non-binding letter of intent. However, in recent days both parties have released videos and tweets suggesting that the deal could soon become official. When it purchases the mining farms, Squire will also receive marketing and advertising assets like the coingeek.com website.
Calvin Ayre selling his mining farms
After this acquisition, Squire Mining Ltd. will apparently become the largest publicly traded crypto mining company in the world in terms of hash power.
Squire will pay CAD$60.3 million for the portfolio. Most of that will consist of CAD$34.4 million in Squire’s common shares. The rest will come in the form of a vendor-take-back note worth CAD$25.8 million.
The 62,440 ASIC miners in question produce around 1 million TH/s and can consume around 90 MW of power. More than half the rigs are located in the U.S. (35,940). Roughly a third are in Kazakhstan (20,500), while 6,000 are located in Canada.
Squire has agreed to take on CoinGeek employees and consultants who manage and operate these assets. It will also continue to employ CoinGeek’s marketing and advertising teams.
CoinGeek owner Calvin Ayre said:
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.
Who’s buying whom?
The Squire press release from November 30 raises some interesting questions. At the moment, the majority of CoinGeek’s equipment is mining Bitcoin SV (BSV). So, will Squire use this hash power to mine other cryptocurrencies?
Considering Squire’s public support of BSV, a major redistribution of CoinGeek’s hash power seems unlikely.
The press release also said:
In conjunction with the Transaction, Squire intends to change its name to CoinGeek Technologies Ltd.
Furthermore, the deal would give Calvin Ayre (Bigfoot Holdings) 53.3% of Squire’s common shares after the acquisition.
Considering these peculiarities, it’s possible this deal is actually a distribution of assets between the two companies, as opposed to a takeover.
- Calvin Ayre will sell 62,440 ASIC miners of CoinGeek Mining (owned by Bigfoot Holdings Group Ltd.) to Squire Mining Ltd. for CAD$60.3 million.
- A large percentage of the total amount (CAD$60.3 million) will consist of Squire’s common shares (CAD$34.4 million).
- Calvin Ayre will receive around 114.8 million Squire shares, which will make him the owner of 53.5 percent of the company (via Bigfoot Holdings Group Ltd.).
- Squire Mining Ltd. will change its name to CoinGeek Technologies Ltd.
- Calvin Ayre will acquire the majority of shares in Squire Mining Ltd. (now CoinGeek Technologies Ltd.), which will own CoinGeek.