The dream of creating the largest, publicly traded Bitcoin miner seemed to have hit a roadblock as Squire Mining Ltd. announced that itself and Bigfoot Holdings Group Ltd. (operating as CoinGeek Mining & Hardware) have agreed to further extend exclusive negotiations to March 31, 2019, for Squire to acquire the mining assets owned by CoinGeek.
All doesn’t seem to be right at Squire Mining
Squire Mining had announced its plans to acquire Coingeek’s mining assets in mid last year as the advent of Bitcoin SV was to drive growth in the mining hardware sector, reinforcing the Squire team’s optimism on future growth prospects. Following the acquisition talks, Squire also started working on the development of its prototype FPGA (field programmable gate array) ASIC microchip for mining Bitcoin SV, Bitcoin and other SHA-256 associated cryptocurrencies.
But things seem to have fallen flat as the company reported its failure in getting the desired result after initial simulation testing of its new prototype ASIC (Application-Specific Integrated Circuit) chip for mining Bitcoin SV. This failure also led to the resignation of Taras Kulyk as Chief Executive Officer and Director, the brain behind the partnership with Coingeek and the development of new ASIC microchip.
The market hasn’t been apiece with the Squire Mining and with the meltdown, in crypto prices, the stock has suffered severely. Squire Mining SQR, after reaching an all-time high of 0.815 CAD on September 20, 2018, reached its lowest point today, February 1, 2019; with a close of 0.018 CAD falling 79.1% since September.
With so much of gaps to fill in for Squire Mining and exit of the CEO, the extension was bound to come in and the new date for the exclusive negotiation and decision is set to March 31st, 2019 for Squire to acquire the mining assets owned by CoinGeek and certain of its affiliates and other blockchain related assets
Although the announcement is still positively put forward that the Squire team remains confident in its decision to progress with this Transaction and the acquisition of mining assets, it still looks a pretty uphill task unless the markets become more viable and Bitcoin SV starts providing miners with higher volumes of transaction fees need for miners to remain profitable.
Another factor to look here which even the announcement mentions is the final report and further roadmap on the product development
“We will be expecting the final report on our ASIC chip design shortly and will provide a further update on the revised product development roadmap. While our reported timelines may have shifted our commitments to deliver the next generation of leading ASIC mining hardware has not.”
Blow to CoinGeek and Bitcoin SV
This acquisition was considered great news for Bitcoin SV as well as for Squire Mining suddenly seems to become sour. The failure to launch their own ASIC chips, the exit of CEO Taras Kulyk and now the further delay in the acquisition will be seen as a massive disappointment. This new chipset being developed to help secure the BSV network with more hash power and the combined entity would have created a great mining pool which was necessary for Bitcoin SV roadmap.
The price of Bitcoin SV also saw a slump after this news as the price that sat close to USD 75 at the start of the week, slumped to sub USD 61 levels when the news was out.
Will the acquisition go through before 31st March or is this the dead end here? Do let us know your views on the same.