On Monday, high-performance computing (HPC) infrastructure provider and bitcoin miner Northern Data AG announced the acquisition of bitcoin mining operation Bitfield NV in a stock-for-share transaction. Northern Data says the company will get 33,000 of the latest generation of ASIC bitcoin miners from the arrangement.
Northern Data AG acquires Bitfield NV – Company gains instant access to deployable ASIC mining rigs
The Bitcoin network hash rate is hovering above the handle of 140 Exahs per second (EH/s) at the time of writing. Bitcoin mining has become incredibly competitive and operations are trying to be more energy efficient. In 2021, there were a number of orders and takeovers of thousands of ASIC bitcoin miners. On September 27, infrastructure provider HPC and bitcoin miner Northern Data AG announced the acquisition of Bitfield.
The acquisition will allow Northern Data to acquire 33,000 ASIC bitcoin miners via the deal. “Northern Data will acquire up to 100% (but not less than 86%) ownership interest in Bitfield NV with a total enterprise value of approximately €400 million and have signed binding purchase agreements with major shareholders today,” the company announced.
Northern Data will get instant access to Bitfield’s deployable ASIC mining rigs and existing hardware, including “over 6,600 high-performance ASIC miners already in operation.”
“The commissioning schedule for the deployment of 26,000 new miners already available, primarily at sites in North America, is expected to be completed by the end of the first quarter of 2022,” North Data details.
Stock-for-Share Deal: Issuance of up to 5.1 million shares in Northern Data AG
The transaction between the two parties will be a “share-for-share transaction that includes the issuance of up to 5.1 million shares in Northern Data AG”. All bitcoin mining sites are “mainly” located in “Canada and the USA,” according to the announcement on Monday. The company plans to “increase the number of ASIC miners and GPU server systems” in the future.
“The acquisition of Bitfield is an important pillar of our scalable growth strategy,” Aroosh Tillainathan, founder and CEO of Northern Data AG, said in a statement sent to Bitcoin.com News. “With this acquisition, we have added bitcoin mining to our three existing businesses — bitcoin hosting and services, altcoin mining and cloud computing — and achieved an even greater increase in value, not least due to the trend in mining profitability.”
What do you think of Northern Data AG’s acquisition of Bitcoin mining company Bitfield? Tell us what you think about it in the comments section below.
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