Hut 8 acquires TeraGo's Data Center Business for C$30M

Hut 8 Mining (NASDAQ:HUT) entered into a definitive agreement to purchase the cloud and colocation data center business from TeraGo which will establish the former as a high-performance computing platform, providing unique positioning for the Company within the digital asset ecosystem. Under agreement terms, consideration payable to TeraGo will consist of C$30M, to be funded from existing cash on balance sheet. The acquisition consists of five data centers across Canada with a comprehensive information technology offering that includes a complete selection of scalable cloud services. It will add ~400 commercial customers, across a variety of industry verticals and also adds 30+ experienced data center professionals with enterprise grade data center expertise. "The acquisition of this complementary business diversifies Hut 8's operations with a discrete, steady cash flow, that is uncorrelated to digital asset mining," CEO Jaime Leverton commented. Transaction expected to close in 1Q22.