Reshab AgarwalNorthern Data acquires 33k ASIC Bitcoin miners in a stock-to-stock deal arrangement. They have acquired the Bitcoin mining company Bitfield NV which has led to this deal. The acquisition has made the company a lot larger and the miners are going to give a serious boost in their hash rate. These Bitcoin miners cost a lot anywhere between $5k-$10k generally, which makes it a big deal.
The acquisition
Bitcoin mining is becoming competitive again as the hash rates continue to recover and the difficulty goes up. There have been continuous improvements in energy usage in BTC mining companies and they are continuously moving towards more efficient methods. This is why the acquisition of the operation Bitfield by Northern Data doesn’t seem much of a suprise. The deal between the two is such that Northern Data is acquiring at least 86% equity in Bitfield and up to 100% for 400 million Euros. And this is also allowing them to get the 33,000 ASIC miners.
Out of the total miners that Northern Data has received 6,600 are already in use. And talking about the rest they will start operation by the end of Q1 2o22. It takes time to set up such a huge number of miners efficiency to get the most out of it. This is why it is not that easy for big mining firms to add new machines to their setup. As of now, the mining rigs are located in the US and Canada. Of this deal, Bitfield is also going to gain up to 5.1 million in Northern Data shares.
The idea behind the acquisition
It is clear that the main reason behind the acquisition is to increase their mining capacity and make more profits. The founder of the company Nothern Data also said that it is going to be huge for their growth in the future. He also said that they are adding Bitcoin mining to their existing businesses like hosting services altcoin mining and cloud computing. All in all the company is expected to see fast growth due to their in the near term.
What are your thoughts as Northern Data acquires 33,000 ASIC Bitcoin Miners? And do you think this is going to be fruitful for them in the future? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
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