Crypto-asset broker Voyager Digital Ltd is buying LGO Markets, a French cryptocurrency exchange focused on corporate investors. The two firms will merge under one brand, Voyager, and their two separate native tokens, VGX and LGO, will also merge.
The deal grants Voyager, a Canadian Securities Exchange-listed (CSE) firm, access to the European retail market through LGO’s Virtual Asset Service Provider licence held with the French financial regulator, industry media reports.
LGO will cease to concentrate on institutional investors on Oct. 31, as it simultaneously assumes the Voyager brand. To complete the acquisition, Voyager will issue one million shares, whose value will, in part, determine the ultimate deal price.
The other part will depend on the value of the merged in-house crypto token, which, according to reports, will feature “decentralized finance functions such as community governance and staking at an initial interest rate of 7%.”
The deal is still subject to regulatory approval. Shares of Voyager fell 2.3% to 0.56 Canadian dollars ($0.43) in CSE trading Friday. The stock is down more than 16% since the news of the acquisition broke out on Oct. 21. Voyager has a market value of $36.5 million.
Voyager chief executive officer, Hugo Renaudin, was quoted as saying:
European clients will be able to access the Voyager app using the LGO regulatory setup in Europe, and both LGO and VGX tokens will be merged into a new token.
He added that the “new token will have more utility”, to the benefit of token holders in the U.S., Europe and elsewhere.
LGO touts itself as a “leading” crypto exchange for institutions, which provides “customizable services, best in class technology, and deep liquidity.” The platform caters to businesses “looking to buy/sell or lend/borrow digital assets.”
What do you think about the merger of Voyager and LGO? Let us know in the comments section below.
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Canadian cryptocurrency mining firm Cryptoglobal (TSXV: CPTO) and the owners of one of the largest US-based mining farms Hyperblock have announced that they have reached an agreement that the latter will acquire the former. Under the terms of the deal, Hyperblock will acquire all of the issued and outstanding common shares of Cryptoglobal for consideration of $0.74 each, representing a total equity value of approximately $106 million.
According to the announcement, the combined company will have a lineup of over 21,000 miners using 28 MW of power across multiple locations in North America. Hyperblock currently operates a 20 MW mining facility in the North West US, which has expansion capacity to 80 MW. Its existing facility is powered by hydro-electric energy that offers a very low electricity consumption rate at just under $0.04 per KW/h. Cryptoblobal currently operates across multiple facilities in Canada, totaling 8 MW of power.