Bitcoin miner Bitfield has announced that it would be acquired by Northern Data, a blockchain and high-performance computing start-up.
An announcement made on September 27 stated that all key shareholders had signed a binding purchase agreement for the whole Bitfield firm, which was valued at around $460 million at the time of the signing. According to the terms of the agreement, Northern Data would acquire an equity interest in Bitfield ranging from 86 percent to 100%.
In addition to getting instant access to 6,600 active ASIC miners, Northern Data claims to have established itself as “a prominent worldwide Bitcoin mining company” as a result of the acquisition.
By the beginning of the second quarter of 2022, it is estimated that an additional 26,000 brand-new miners will be deployed, largely in Canada and the United States.
As the company’s founder and CEO, Aroosh Thillainathan said: “We are excited to be able to expand our Bitcoin mining business into three other areas: Bitcoin hosting and services, Altcoin mining, and Cloud Computing.”
For the year 2021, Norther Data Management forecasts revenues to be in the range of $210 million and $260 million, approximately.
Mining difficulty for bitcoin has increased significantly in recent months, rising from an all-time low of 85 million trillion hashes per second (TH/s) on July 3 to a recent high of 140 million TH/s on September 21.
This is the highest level since early June, according to a seven-day average of bitcoin mining difficulty. As of this writing, the Bitcoin network has a total hash rate of 136 million transactions per second.
Due to China’s early crackdown on Bitcoin mining, the difficulty of mining Bitcoin dropped as Chinese miners abandoned the network. However, the recent increase in the hash-rate indicates that Chinese miners are returning to the network.
