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 goal acquisition firm (SPAC) deal.
The mixed firm is valued at $2 billion. Plans are in place to checklist it on the NASDAQ underneath the ticker image “CIFR.”
Bitcoin going mainstream
MicroStrategy CEO Michael Saylor famous the brand new agency will be 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, stated the agency has an extended 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 consists of entry to top-level mining tools, confirmed operations improvement, administration, and upkeep expertise. Wurth added that he’s dedicated to serving to the agency develop into the main Bitcoin mining firm within the U.S.
Tyler Web page, CEO of Cipher Mining, stated that Bitcoin mining companies had been usually smaller, undercapitalized, and lacked expertise previously. However underneath this new deal, Cipher Mining has the mandatory sources to make the most of the scenario offered.
“We imagine that our U.S. domicile gives us extra benefits of low-cost, dependable energy and a clear, steady and safe regulatory and company atmosphere. This mix of things positions us to develop into the main Bitcoin miner and in addition 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 presents a set of blockchain options resembling investigative software program and a blockchain-as-a-service bundle.
Why are SPACs all the trend?
A special-purpose acquisitions company (SPAC) is a shell firm fashioned by traders with the only intent of elevating cash by means of an IPO. The purpose is to amass one other firm ultimately.
SPACs shouldn’t have any business operations in that they don’t make or promote something. Often, a SPACs solely asset is money raised in its personal IPO.
SPACs have existed for many years, however they’ve develop into extra prevalent in current instances as a consequence of excessive market volatility. That is partly because of the altering macroeconomic panorama caused by the continued panic scenario.
A major advantage of this setup over a traditional IPO is that going public is considerably faster.
“Resulting from its lack of elementary 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 belongings to be described, and enterprise threat elements are minimal.”
With that in thoughts, Cipher Mining is probably going trying to strike whereas Bitcoin is driving its bull part.
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