A U.S.-based Bitcoin mining agency, named Cipher Mining Inc., will end result from the merger between Bitfury subsidiary Cipher Mining Applied sciences Inc. and Good Works Acquisition Group, in a particular objective acquisition firm (SPAC) deal.
The mixed firm is valued at $2 billion. Plans are in place to record it on the NASDAQ beneath the ticker image “CIFR.”
MicroStrategy CEO Michael Saylor famous the brand new agency will be a part of the rising record of Bitcoin-related firms on the NASDAQ. Already listed are Riot Blockchain (RIOT), Marathon Patent Group (MARA), and Canaan (CAN).
— Michael Saylor (@michael_saylor) March 5, 2021
The Chairman of Good Works, Doug Wurth, stated the agency has a protracted historical past in various asset markets. His perception within the rising crypto ecosystem meant Cipher Mining offered an irresistible alternative.
What’s extra, its relationship with Bitfury brings a number of benefits. This contains entry to top-level mining tools, confirmed operations improvement, administration, and upkeep expertise. Wurth added that he’s dedicated to serving to the agency change into the main Bitcoin mining firm within the U.S.
Tyler Web page, CEO of Cipher Mining, stated that Bitcoin mining companies have been sometimes smaller, undercapitalized, and lacked expertise prior to now. However beneath this new deal, Cipher Mining has the mandatory sources to make the most of the state of affairs offered.
“We consider that our U.S. domicile offers us extra benefits of low-cost, dependable energy and a clear, steady and safe regulatory and company setting. This mixture of things positions us to change into the main Bitcoin miner and in addition allows future vertical integration alternatives throughout the Bitcoin ecosystem.”
Bitfury is headquartered in Amsterdam, Netherlands, and has been a pacesetter in rising applied sciences since 2011. Along with its Bitcoin mining operations, it additionally gives a set of blockchain options reminiscent of investigative software program and a blockchain-as-a-service package deal.
A special-purpose acquisitions company (SPAC) is a shell firm shaped by traders with the only intent of elevating cash by way of an IPO. The aim is to amass one other firm ultimately.
SPACs would not have any industrial operations in that they don’t make or promote something. Normally, a SPACs solely asset is money raised in its personal IPO.
SPACs have existed for many years, however they’ve change into extra prevalent in current instances as a consequence of excessive market volatility. That is partly as a result of altering macroeconomic panorama caused by the continued panic state of affairs.
A major advantage of this setup over a standard IPO is that going public is considerably faster.
“Attributable to its lack of elementary operation, each monetary statements and prospectus filed throughout a SPAC IPO are considerably shorter and will be ready in a matter of weeks (in comparison with months for a standard IPO). There are not any historic monetary outcomes to be disclosed or belongings to be described, and enterprise danger elements are minimal.”
With that in thoughts, Cipher Mining is probably going seeking to strike whereas Bitcoin is using its bull section.
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