Today, Cipher Mining Technologies announced that it plans to go public through a merger with Good Work Acquisition Corp. Cipher Mining was recently founded as a subsidiary of the Dutch Bitcoin mining company Bitfury
“The combined company, which will be renamed Cipher Mining Inc, is expected to be listed on the Nasdaq under the ticker symbol ‘CIFR’,” Reuters reported.
Following the merger with Good Work, which values the combined company at $ 2 billion, the merged company is expected to be the largest bitcoin mining operation in the US, the announcement said. By merging with Good Works, a special purpose acquisition company (SPAC), Cipher can bypass the traditional IPO system by going public.
The regulation and institutionalization of Bitcoin miners will allow investors to gain exposure through trusted and recognized avenues.
“We were drawn to Cipher Mining because we believe the Bitcoin mining space is an attractive way to gain risk-adjusted exposure to the growing crypto ecosystem,” Good Works’ Doug Wurth said in the announcement.
“The deal will provide the merged entity with gross cash proceeds of $ 595 million, including $ 425 million from investors including Fidelity Management & Research Company and Morgan Stanley’s Counterpoint Global,” Reuters reported.
The transaction is representative of the growing interest in regulated Bitcoin-focused entities. As the economic incentive for Bitcoin mining grows, these institutionalized public companies strengthen the network and invite new investments into the space.
The merger is expected to be completed before the end of the second quarter of 2021.