Canadian blockchain and financial technology company CryptoGlobal Corp. agreed to buy Blockchain Dynamics Inc., a trading and services platform for cryptocurrencies. The company expects the deal to add to its revenue.
All Blockchain Dynamics shares will be exchanged for 20.24 million common shares of CryptoGlobal. The transaction value of about $28 million has been completed at $1.40 per share.
With the acquisition, expected to close by the end of March, Blockchain Dynamics brings exclusive custodial service arrangements, $1.75 million in cash, and $2 million in cryptocurrency holdings to CryptoGlobal.
According to CryptoGlobal CEO Rob Segal, the acquisition will allow the firm to securely store and trade its own crypto holdings and provide custodial services for institutional investors, exchanges and token holders.
Earlier this week, CryptoGlobal had agreed to buy BitCity Group along with a 100 MW, ten-year, Power Purchase Agreement, and hosting agreement to build out a 40,000 sq foot cryptocurrency mine in Ontario.
Segal now said, "We've been assessing Blockchain Dynamics for months..... It's the perfect complement to our recent agreement to acquire BitCity, which will secure the 100 MW of long-term power and facilities CryptoGlobal needs to deliver a growing suite of self-mining and hosting revenue."
Separately, CryptoGlobal announced an agreement with a strategic investor, who will fund up to C$15 million towards its mining operations and acquisition of Blockchain Dynamics.
On Tuesday, CryptoGlobal had announced a C$10 million private placement following the announcement of BitCity deal.
by RTT Staff Writer
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