POW.RE Holdings Acquires Block Green AG
POW.RE Holdings Limited, a Canadian company specializing in bitcoin mining, has announced its intention to purchase the Swiss liquidity protocol, Block Green AG. This acquisition is structured as a multifaceted deal involving equity, cash, and bitcoin payments. While the official agreement is expected to be finalized within the next 90 days, the plan is to unify POW.RE’s eco-friendly mining practices with Block Green’s innovative financial services tailored for bitcoin miners.
Agreement Overview
According to the agreement specifics, POW.RE is set to acquire all shares of Block Green through a mixture of cash, bitcoin (BTC), and an equity swap.
Block Green, which is compliant with Swiss regulations and backed by notable investors such as Founders Fund and Coinbase Ventures, specializes in providing liquidity solutions, including revenue-streaming options and risk management tools for mining operations.
On the other hand, POW.RE operates hydroelectric power facilities located in Canada and Paraguay, focusing on technology related to hashrate management.
Anticipated Benefits
The collaboration is predicted to foster significant synergies, notably through Block Green’s established connections in the mining sector, allowing for an increase in market access. Additional anticipated benefits include:
- Diversified income avenues
- Improved regulatory status, thanks to Block Green’s Swiss licensing and pending approvals from the European Union (EU)
Operational Integration and Leadership
As part of the deal, POW.RE will contribute a consistent amount of hashpower to Block Green’s marketplace for a period extending over 24 months once the acquisition is finalized. Post-transaction, Sebastien Hess, the CEO of Block Green, will take a position on the board of POW.RE, ensuring that the existing team at Block Green continues to operate, which could help facilitate a seamless transition.
Regulatory and Strategic Considerations
The completion of this deal will be contingent upon receiving necessary regulatory approvals along with meeting specific conditions before it can close. POW.RE has characterized the acquisition as a strategic move towards establishing a robust credit infrastructure for bitcoin, while Block Green has indicated that the partnership will enhance the scalability of its financial offerings. The financial details of this agreement have not been publicly disclosed.
Both companies plan to sustain their operations in Montreal, Canada, and Rottreuz, Switzerland following the merger.
