Canadian digital currency firm Hut 8 Mining Corp. is buying TeraGo Inc.’s cloud and colocation business for $30 million in cash, the company announced Thursday.
Hut 8 will acquire five of TeraGo's data centres across Canada along with intellectual property related to cloud and colocation services — a move that will expand and diversify the Canadian cryptocurrency firm's digital asset ecosystem. The deal is expected to close in the first quarter of this year following regulatory approval.
"As a team of Bitcoin and blockchain bulls, we are thrilled with the transformative growth opportunity this investment provides," said Jaime Leverton, chief executive officer of Hut 8, in a statement.
“Our unconventional approach to revolutionizing conventional assets serves to drive Hut 8's growth, innovation and market share in the high-performance computing, blockchain, and Web 3.0 industries."
TeraGo said in a separate release it will retain staff for its fixed and wireless business, which is not part of the Hut 8 deal.
“We see the need for 5G private networks accelerating in the next few years as manufacturers, distributors, transportation companies and other industries seek to leverage the benefits of ultra-fast, ultra-low latency, private and secure communications to improve operational efficiencies and lower costs,” said TeraGo Chief Executive Officer Matthew Gerber, in a statement.
“We also believe that we found a great partner in Hut 8 as it has the capabilities to support our cloud and colocation customers for the long term, and provides opportunities for our two companies to deliver services to each other's customers going forward.”
Advertisement