Temur Durrani

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Canadian digital currency firm Hut 8 Mining Corp. is buying TeraGo Inc.’s cloud and colocation business for $30 million in cash, the company announced Thursday.

Hut 8 will acquire five of TeraGo's data centres across Canada along with intellectual property related to cloud and colocation services — a move that will expand and diversify the Canadian cryptocurrency firm's digital asset ecosystem. The deal is expected to close in the first quarter of this year following regulatory approval.

"As a team of Bitcoin and blockchain bulls, we are thrilled with the transformative growth opportunity this investment provides," said Jaime Leverton, chief executive officer of Hut 8, in a statement.

“Our unconventional approach to revolutionizing conventional assets serves to drive Hut 8's growth, innovation and market share in the high-performance computing, blockchain, and Web 3.0 industries."

TeraGo said in a separate release it will retain staff for its fixed and wireless business, which is not part of the Hut 8 deal.

“We see the need for 5G private networks accelerating in the next few years as manufacturers, distributors, transportation companies and other industries seek to leverage the benefits of ultra-fast, ultra-low latency, private and secure communications to improve operational efficiencies and lower costs,” said TeraGo Chief Executive Officer Matthew Gerber, in a statement.

“We also believe that we found a great partner in Hut 8 as it has the capabilities to support our cloud and colocation customers for the long term, and provides opportunities for our two companies to deliver services to each other's customers going forward.”