Home News Bitcoin miner Rhodium set for IPO, valued at $1.7 billion

Bitcoin miner Rhodium set for IPO, valued at $1.7 billion

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Rhodium Enterprises, a Texas-based Bitcoin (BTC) mining business, will launch the first cryptocurrency IPO in 2022.

Rhodium wants to offer 7.69 million shares for $12-$14 each in an initial public offering, according to a filing with the Securities and Exchange Commission last week (IPO). The company will be valued at slightly under $1.7 billion with the issue of 56.8 million class A and 67.5 million class B shares, which will trade on Nasdaq under the ticker “RHDM.”

In fact, Rhodium is a cryptocurrency technology startup that self-mines Bitcoin using unique technologies and liquid cooling technology. Their goal is to be the industry’s most sustainable and cost-effective Bitcoin production.

The firm joins a growing list of Bitcoin miners based in the United States. Marathon, Bitdeer Technologies, Riot Blockchain, and Bit Digital have all been on the list of NASDAQ over the last three years.

Rhodium presently operates a 125-megawatt (MW) mining power plant at its initial Texas location, according to the filing. There are currently 33,600 Bitcoin miners online, with a total hash rate capacity of around 2.7 EH/s.

It will open a second facility in Texas after the IPO and a $100 million capital raising. Where it “expects to create 225 MW of additional capacity”. The company’s existing capacity will be virtually doubled by the end of 2022.

Given that the average cost per BTC in 2021 was approximately $47,000, their electricity cost base is astounding:

“In comparison to the industry average, our infrastructure platform allows us to mine Bitcoin at a much-reduced cost. Our average electrical cost to manufacture one Bitcoin was $2,507 from January 1, 2021, to September 30, 2021.”

Mr. Wonderful plans to invest in mining company stocks

New bitcoin mining haven

Significantly, Texas is gaining a reputation for being a Bitcoin mining haven. Senator Ted Cruz said in the fourth quarter of 2021 that Texas could employ Bitcoin mining. In order to reclaim wasted natural gas. While the Electric Reliability Council of Texas (ERCOT) predicted that by 2023, Texan Bitcoin mining power consumption would have increased fivefold.

Rhodium benefits from Texas’ “autonomous power market and plenty of low-cost renewable energy supplies”. As well as the state’s pro-Bitcoin business climate.

However, given the company’s expertise in liquid-cooling technology and efficiency, it just got a little bit more difficult for small Bitcoin miners to solve legitimate blocks.

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