Vogogo’s Shares Spike Following 828 Crypto-mining Acquisition

Roughly 10,500 mining machines are fully operational now that the deal has closed, with the rest expected to be installed by mid-July.

Vogogo (CSE:VGO) has officially acquired 14,000 ASIC mining rigs as part of its C$46 million acquisition of the 828 cryptocurrency mining assets, the company announced on Monday (July 2).

According to the company’s press release, Vogogo said it purchased 14,000 Antminer S9 cryptocurrency mining machines in addition to the supporting infrastructure from 828 L.P., all of which are being installed in a facility near Montreal, Quebec.

Following the deal’s closing, roughly 10,500 mining machines are completely operational while the rest will be installed by mid-July. The additional mining rigs makes it possible for the company to add at least 4,000 more mining machines.

As part of the deal, Vogogo also entered into a leasing agreement for the facility which will have 30 megawatts of power for the purpose of cryptocurrency mining. At least 27 of those will be used directly for mining with the remainder for HVAC and electrical systems. The company has also received confirmation from Hydro Quebec that power for the facility creates part of the 128 megawatt electricity approved for blockchain in Quebec.

“Closing of the 828 transaction provides Vogogo with a total of 18,125 mining machines and 36 megawatts of available power, enough for current operations plus expansion capacity, and adds significant size and scale to the company’s cryptocurrency mining operations,” John Kennedy FitzGerald, president and CEO of the company said in the release.

In addition to the acquisition, Vogogo also has an option to buy–within 180 days following Monday’s announcement–electric and HVAC equipment for expansion of its cryptocurrency mining activities at a location not yet chosen for C$20 million. The equipment can service roughly 35 megawatts of electrical power.

Shares of Vogogo responded favorably following Monday’s announcement: over a one-day trading period the company’s stock rose by an even 10 percent to close at C$0.33 on Tuesday. The company has a 52-week high of C$0.94 and a 52-week low of C$0.24.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article

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