A U.S.-based Bitcoin mining agency, named Cipher Mining Inc., will outcome from the merger between Bitfury subsidiary Cipher Mining Applied sciences Inc. and Good Works Acquisition Group, in a particular goal acquisition firm (SPAC) deal.
The mixed firm is valued at $2 billion. Plans are in place to checklist it on the NASDAQ below the ticker image “CIFR.”
Bitcoin going mainstream
MicroStrategy CEO Michael Saylor famous the brand new agency will be a part of the rising checklist of Bitcoin-related corporations 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, mentioned 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 growth, administration, and upkeep expertise. Wurth added that he’s dedicated to serving to the agency grow to be the main Bitcoin mining firm within the U.S.
Tyler Web page, CEO of Cipher Mining, mentioned that Bitcoin mining corporations have been sometimes smaller, undercapitalized, and lacked expertise prior to now. However below this new deal, Cipher Mining has the mandatory sources to benefit from the state of affairs offered.
“We imagine that our U.S. domicile gives us further benefits of low-cost, dependable energy and a clear, secure and safe regulatory and company atmosphere. This mix of things positions us to grow to be the main Bitcoin miner and likewise permits future vertical integration alternatives throughout the Bitcoin ecosystem.”
Bitfury is headquartered in Amsterdam, Netherlands, and has been a frontrunner in rising applied sciences since 2011. Along with its Bitcoin mining operations, it additionally affords a set of blockchain options equivalent to investigative software program and a blockchain-as-a-service package deal.
Why are SPACs all the fashion?
A special-purpose acquisitions company (SPAC) is a shell firm fashioned by buyers with the only intent of elevating cash by means of an IPO. The objective is to accumulate one other firm ultimately.
SPACs don’t have any business 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 grow to be extra prevalent in latest instances as a result of excessive market volatility. That is partly because of the altering macroeconomic panorama led to by the continuing panic state of affairs.
A big advantage of this setup over a traditional IPO is that going public is considerably faster.
“Because of its lack of basic operation, each monetary statements and prospectus filed throughout a SPAC IPO are considerably shorter and may be ready in a matter of weeks (in comparison with months for a conventional IPO). There aren’t any historic monetary outcomes to be disclosed or property to be described, and enterprise danger elements are minimal.”
With that in thoughts, Cipher Mining is probably going trying to strike whereas Bitcoin is using its bull part.
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