Bitfury’s US Bitcoin Mining Offshoot Set to Go Public, Valued At $2 Billion
- Bitfury’s Bitcoin mining offshoot, Cipher Mining, is set to become a listed firm valued at $2 billion.
In an official announcement on Friday, the mining outfit stated that it had inked a merger agreement with Good Works Acquisition Corp, a special purpose acquisition company (SPAC) listed in NASDAQ. The announcement noted that the two firms had inked a business combination agreement. Cipher mining is an offshoot of popular Bitcoin hardware offeror Bitfury.
As per the announcement, the merger agreement means that Bitfury’s US mining wing will be listed in NASDAQ under Cipher Mining Inc.
The Good Works-Cipher agreement valued the merged company at $2 billion. More investors such as Counter Group (backed by Morgan Stanley) and Fidelity Management are expected to lead an upcoming$425 million funding series for the new outfit.
The extra inflow of cash will take place through private investment in different public equity or PIPE and funding rounds. The agreement also stipulates that Bitfury will offer approximately $50 million in the form of an investment in kind to top up the $170 million that is available following last year’s Good Works IPO. This means that the combined company has about $595 million in gross cash holdings.
Tyler Page, Cipher Mining CEO, commented on the deal, expressing his delight that it was the right step towards capitalizing on Bitcoin mining operations. Page explained,
“With this transaction, we will be able to combine the formidable skill sets and technologies developed by Bitfury Group over the past ten years with what we believe will be a leadership position on the global cost curve, and thereby create a true leader in the Bitcoin mining industry.”
The merger is expected to materialize at the end of the second quarter of this year. Cipher is looking forward to hitting the 745 megawatts mining capacity before the end of 2025.
Cipher becomes the latest Bitcoin mining outfit to go public, although through an agreement with a SPAC outfit. Australian-based Iris Energy is expected to issue a $39 million IPO during the coming summer.