Squire Mining Intends To Purchase CoinGeek For $45 Million
Vancouver-based ASIC chip designer Squire Mining is to purchase CoinGeek, a cryptocurrency news site and mining pool operator, Finance Magnates reports.
Squire Mining, whose market capitalization is of $35.4 million, has its shares traded on stock exchanges throughout the world, and has been partnered with CoinGeek since August.
Under the terms of that deal, CoinGeek became the sole distributor of Squire Mining products. The new deal involves Squire Mining taking control of CoinGeek’s operations and employees, as well as 62,440 ASIC mining devices located on sites in Canada, the US, and Kazakhstan. These machines reportedly have a combined hashrate of around 1 million terrahashes per second, according documents made public by the company.
It is noteworthy that Squire Mining is a public company and its stocks can be purchased on the Canadian Securities Exchange (CSE). If CoinGeek is purchased it will make the world’s largest mining company.
Earlier, Squire Mining raised $25,500,000 during private placement financing in August 2018.
Just a reminder, ASIC (application-specific integrated circuit) chips are microchips specifically designed to handle cryptocurrency mining. Specialised devices are much more efficient at this than computers that also handle other tasks, and because cryptocurrency mining is a zero-sum game, ASIC devices are now the only way to profitably mine cryptocurrency. Manufacturers of these machines are also in competition, constantly releasing newer models which inevitably make the older ones obsolete.