Cipher Mining, a bitcoin mining company owned by Bitfury, has announced that it is going public through a merger with a special acquisition company (SPAC). The deal values the combined company at $ 2 billion, with funding from investors such as Morgan Stanley and Fidelity.
- Cipher Mining Technologies Inc., a newly formed US bitcoin mining operation from Bitfury, announced Friday, it will go public through a merger with Good Works Acquisition Corp. (Nasdaq: GWAC). The transaction is expected to close in the second quarter.
- According to Cipher Mining, the deal values the combined company at $ 2 billion and “will generate gross cash proceeds of $ 595 million for the merged entity, including $ 425 million from investors including Fidelity Management & Research Company and Morgan Stanley’s Counterpoint Global”, said Reuters. reportedThe deal is also backed by 25 other institutions.
- The merged company, which is Cipher Mining Inc. is expected to be listed on Nasdaq under the new ticker symbol CIFR. JP Morgan Securities and Wells Fargo Securities are acting as financial advisors on the deal with Good Works and Cipher Mining, respectively.
- The new entity “will be established as an industrial-scale bitcoin mining company,” explained Cipher Mining, adding that it “aims to be the leading bitcoin mining company in the United States.” Initially, four data centers are planned in Ohio and Texas.
- According to the announcement, the new entity, as a standalone company, will have the “potential to reach a cumulative deployed capacity of 745 MW by the end of 2025”. In addition, the “US data centers are scheduled to come on-line between Q4 2021 and Q2 2022 with a total of 445 MW of power capacity and planned expansion of an additional 300 MW implemented between 2023 and 2025.”
- Good Works is a publicly traded special purpose acquisition company (SPAC), with approximately $ 170 million in trust. SPACs are shell companies that raise money to acquire a private company with the intent of making it public. This allows target companies to bypass a traditional initial public offering (IPO).
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