BitFuFu, the provider of cloud mining services, plans to obtain public status by merging with a special purpose acquisition company (SPAC) Arisz Acquisition Corp. The press release stated this.
Thus, shares of the combined firm BitFuFu Inc will receive the FUFU ticker. Moreover, the Nasdaq launch will take place in the third quarter of 2022.
The estimated value of BitFuFu Inc is $1.5 billion. According to the supplier, this figure is 4.6 times higher than the projected revenue this year, which is expected to reach $330 million at a Bitcoin price above $45,000.
The SPAC deal includes financing in the amount of $70M
BitFuFu is the only strategic partner of Bitmain for the cloud mining of cryptocurrencies. Furthermore, the SPAC deal includes financing in the amount of $70 million (based on $10 per share) provided by the manufacturer of mining equipment and its Antpool pool.
According to the press release, the merger will bring BitFuFu more than $129 million in cash; after taking into account the costs associated with the implementation of the transaction. Also, provided that there is no buyback of shares by existing shareholders of Arisz.
The company will use the funds received to purchase mining equipment and create infrastructure.
Shutting down devices located in Kazakhstan
In December 2021, BitFuFu shut down devices located in Kazakhstan; due to problems with power supply in the country and began relocating the equipment to the United States. Later in January 21, 2022, the supplier announced the completion of the move and the restoration of the hashrate.
Recall that earlier, the mining firm Stronghold Digital Mining conducted an Initial Public Offering (IPO) on Nasdaq, placing 6,687,305 Class A shares at a price of $19. Stronghold also granted the underwriters a 30-day option to purchase 1,003,095 shares at the IPO price minus discounts and commissions. The firm uses the raised funds for general corporate purposes, including for the purchase of mining equipment and generating assets.
On January 20, securities of the blockchain hosting provider Core Scientific began trading on the same exchange under the ticker CORZ.