Hut 8 is striking into more traditional sectors of data processing with a $30-million acquisition of a Canadian-based business services provider.
The cryptocurrency miner with major operations in Medicine Hat announced Thursday that it had finalized an all-cash offer for the purchase of TeraGo Inc.
That firm has facilities in Toronto, Vancouver and Kelowna, a roster of 400 customers and, according to Hut 8 officials, will provide a platform to deal with non-crypto firms that employ blockchain in operations.
“(The deal) diversifies Hut 8’s operations with a discrete, steady cash flow, that is uncorrelated to digital asset mining,” said CEO Jaime Leverton in a release. “It puts us at the forefront of the accelerated digitization of industry, establishing us as the bridge between traditional and nascent iterations of high-performance computing.”
Leverton reiterated the company is “bullish” on Bitcoin but said the purchase diversifies the company that was founded in 2018 and recently announced a major cypto-focused expansion near a moth-balled natural gas plant in North Bay, Ont.
The TeraGo customer base comprises entries in the gaming, graphics and advanced internet sectors.
Press Release