Bitcoin and data center hardware firm Synteq Digital has acquired Crunchbits LLC, a high-performance computing (HPC) infrastructure and service provider.

The companies announced on May 6 that they had entered into a "binding agreement" regarding the acquisition.

The value of the deal has not been shared.

Crunchbits provides server rental services, including VPS, VDS, Dedicated Servers, and GPU Servers, and has operations in seven data centers across the US in Washington State, Pennsylvania, New York, and Texas.

According to the companies, the transaction will be "seamless" for Crunchbits customers, and the company's team will remain in place, led by Crunchbits founder Eric Yingling.

Synteq will bring its team, capital, engineering scale, and global footprint to the operation, hoping to enable access to newer and more powerful hardware with a faster turnaround time.

The move is part of Synteq's strategy to move towards HPC solutions.

As part of the acquisition, Yingling will become Synteq's VP of HPC Operations, and Crunchbits CTO Yann St. Arnaud will join the team as director of HPC Technical Operations.

"Eric's proven operational track record and experienced team position us to rapidly expand our HPC data center capabilities," said Taras Kulyk, CEO of Synteq Digital. "His expertise and innovative approach to data center infrastructure have already delivered remarkable growth, and we're excited to build on that momentum together."

"I am truly excited to integrate Crunchbits into Synteq Digital," said Yingling. "Synteq provides a powerful corporate platform for growth, allowing us to deliver enhanced value to our customers through superior hardware, faster support, and deeper technical expertise-all while maintaining the practical, performance-driven approach that has defined our success. The strong alignment in culture and vision between our teams establishes a solid foundation for scalable growth and continued innovation across the organization."

Keefe, Bruyette & Woods acted as exclusive financial advisor, and Cozen O'Connor acted as legal counsel to Synteq on this transaction.

According to its website, the team behind Synteq has been providing Bitcoin mining ASIC hardware and data center infrastructure services since 2016. The company is known as the official distributor for Bitmain products in the US, and claims to have sold 400,000 Bitcoin mining ASICs since 2020.

Companies originally focused on Bitcoin mining have been rapidly pivoting to AI and HPC solutions of late. One of the more recent examples is Galaxy Digital Holdings, which announced in April that it was converting its flagship crypto data center into an AI facility for CoreWeave.

Others include the likes of Hive Digital Technologies, Northern Data, Applied Digital, Iris Energy, Mawson Infrastructure, and Crusoe.