Canadian HyperBlock to acquire CryptoGlobal

Canadian mining-as-a-service company HyperBlock plans to purchase Toronto-based mining firm CryptoGlobal to expand their range of services
06 April 2018   1010

Mining-as-a-service has become quite popular with audience, who can't afford a rig or don't want to have a noisy and power-hungry machine running all day long in their house. And one of the largest players in this field in Canada – HyperBlock Technology Corp plans to grow larger still. They announced that they entered a purchase agreement with CryptoGlobal.

HyperBlock plans to buy out CryptoGlobal for a whopping sum of 106 million Canadian dollars, which is roughly equivalent to US$83 million. If the acquisition comes through smoothly, HyperBlock will become one of the largest players in the market of outsource mining.

Toronto-based CryptoGlobal currently is in the business of mining Bitcoin, Ethereum, Litecoin and Dash. And when their computing power joins the market of mining-as-a-service under HyperBlock's flag, it would make a significant impact. HyperBlock's CEO Sean Walsh commented, that this deal furthers the goal of his company to become a comprehensive direct-to-consumer crypto company, offering products and services to the customers to make and manage their crypto-asset investments. Also he added that after the acquisition is finished, HyperBlock plans to be listed on the Canadian Securities Exchange, which is expected around the end of May this year.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   166

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.