CryptoBlox Technologies Inc. (CSE: BLOX) has announced its acquisition of Red Water Acquisition Corp., a company specializing in air-cooled data centers and advanced heat recapture products. The acquisition will make Redwater a wholly-owned subsidiary of CryptoBlox and will help the company expand its presence in the cryptocurrency mining sector. The acquisition is a significant milestone for CryptoBlox as it solidifies its position as a major player in the evolving crypto mining industry.
Redwater has obtained development rights to a prime location in Sturgeon County, Alberta, Canada, for its operations. The site will serve as the foundation for Redwater’s state-of-the-art crypto mining facility, which is designed for efficiency and cost-effectiveness. Of particular interest is Redwater’s commitment to utilizing waste gas from an oil and gas producer as a sustainable and cost-effective fuel source for its mining operations. This demonstrates a strong environmental sustainability initiative.
To support its operations, CryptoBlox plans to enter into a long-term gas supply agreement (GSA) and site lease with True North Data Systems Ltd. (TNDS), enabling the development of generation assets to power the mining operations at the site. Initially, Redwater intends to commission 0.5 to 1.0 MW of generation capacity and mining enclosures within the next 30 to 90 days. The company aims to expand its generation and mining footprint over the next 18 to 24 months, potentially reaching a total capacity of 3 MW or more. In addition, Redwater will explore the possibility of providing peak demand capacity to the Alberta grid, indicating further growth potential for the company.
In exchange for the acquisition of Redwater, CryptoBlox will issue 220,000,000 common shares of the Company at a deemed price of $0.05 per share. The total transaction value is estimated to be $11,000,000. The Consideration Shares will be issued in tranches, with the majority being delivered upon closing of the acquisition, and the remaining portion to be delivered upon the completion of certain milestones. The acquisition was negotiated at arm’s length and does not constitute a change of control.
In addition to the acquisition news, CryptoBlox announced a corporate update. The company has welcomed blockchain industry leader Akshay Sood to its Board of Directors. Sood brings years of experience in advising and incubating early-stage blockchain and web3-based startups. He replaces Bryson Goodwin, who stepped down as CEO and Director of the company. CryptoBlox has appointed Taryn Stemp as interim CEO.
CryptoBlox Technologies Inc. is a blockchain technology company with a diversified portfolio of fintech blockchain services, blockchain battery technologies and applications, and crypto mining facilities. The company’s acquisition of Redwater marks a significant milestone in its plan to meet the growing demand for cost-effective cryptocurrency infrastructure in North America. By integrating its mining facilities into power generation facilities in Alberta, CryptoBlox aims to achieve a high degree of financial optionality and long-term operational certainty, while also delivering clean and low-cost mining operations.