POW.RE Holdings Limited, known for its sustainable Bitcoin mining technology, has embarked on a strategic acquisition of Block Green AG, a Swiss-based Bitcoin liquidity protocol and financial services platform. This move is set to forge a new entity within the Bitcoin ecosystem, leveraging the combined strengths of both companies' technological and financial expertise. The acquisition, structured as an equity swap with additional considerations in Bitcoin and USD, is poised to unlock operational and financial synergies, broadening market access and enriching product offerings.
Mike Cohen, the CEO of POW.RE, underscored the acquisition's potential to transform the Bitcoin mining landscape. By integrating Block Green's innovative financial solutions, POW.RE aims to transcend traditional mining operations, offering advanced financial tools powered by hashrate technology. Block Green's portfolio, which includes revenue-streaming products, lending, and hedging solutions tailored for Bitcoin miners and data center operators, has attracted investments from notable venture capital firms such as Peter Thiel's Founders Fund, Coinbase Ventures, and FJ Labs.
The merger is expected to bolster regulatory positioning, thanks to Block Green's Swiss financial intermediary license and its pending applications for EU MiCA licenses. Additionally, the combined entity will benefit from diversified revenue streams, offering resilience against the volatile nature of mining economics. As part of the agreement, POW.RE will dedicate a baseload of hashpower to Block Green's marketplace for a minimum of 24 months, ensuring sustained collaboration. Sebastien Hess, CEO of Block Green, will join POW.RE's board, bringing his extensive experience in entrepreneurship and financial technology to the table.
The companies are working towards finalizing a definitive agreement within the next 90 days, pending standard closing conditions and regulatory approvals. This strategic acquisition marks a pivotal development in the creation of a robust Bitcoin financial infrastructure, promising to enhance the ecosystem's efficiency and accessibility.
