Ethereum mining company to buy Blockchain technology firm for $4bn

Tech giant Ethereum will buy a blockchain technology firm to bolster its operations, according to Bloomberg.

The transaction, which is expected to close later this week, is expected for $6bn, Bloomberg reported.

It is the first acquisition by an existing investor in the blockchain startup, said a person familiar with the matter, adding that the transaction is expected in early 2018.

Ethereum has already taken a significant stake in blockchain startup Chain, which launched last year.

The two firms had been in talks to form a partnership, but the talks stalled over regulatory concerns.

Blockchain technology is increasingly becoming a popular alternative to traditional finance, but its use has raised concerns over privacy and security.

It was one of the reasons behind the downfall of Bitcoin.

Ethereum, which started in 2014, is one of a growing number of companies that have emerged to challenge traditional banks and other financial institutions.