Major US Bitcoin Mining Company Going Public at $4.3B Valuation via SPAC Backed by BlackRock
100% net carbon neutral miner, Core Scientific, which mined 928 BTC in Q2 and over 3,000 BTC so far in 2021, is also planning to expand to more states.
Core Scientific Holding is going public through a merger with a blank-check company that puts its valuation at $4.3 billion.
Rival public cryptocurrency miners Marathon Digital and Riot Blockchain have market capitalizations of $2.25 billion and $2.18 billion respectively.
A major US cryptocurrency mining company, Core Scientific, is signing a deal with Power & Digital Infrastructure Acquisition Corp, which is backed by BlackRock Inc. This deal will fetch $300 million in cash proceeds, but they didn’t disclose a private investment in public equity (PIPE) round.
Core plans to funnel this fresh capital back into the company to fund growth.
Special purpose acquisition companies (SPACs) have become a popular way to go public where pools of capital are raised through initial public offerings to merge with a private company and take it public.
Power & Digital raised $345 million in an upsized IPO in February.
The company mined 928 BTC in Q2 and a total of over 3,000 BTC so far in 2021 compared to Marathon mining, a total of 846 BTC and Riot 1,167.
In 2020, it generated $60 million in revenue and forecast revenues of $493 million and $1.1 billion for fiscal 2021 and 2022, respectively.
Core is currently adding capacity at its existing sites, which operates about 80,000 rigs and will be extended to the past 300,000 miners by the end of 2022. The company is also looking to build more facilities in potentially one to two more states.
“We’re all sold out. Every bit of infrastructure we can build — and we’re the biggest — we have demand for,” co-chairman and CEO Mike Levitt said in an interview.
“We’re basically sold out of capacity through 2022, and we’re building more.”
Core Scientific, which has operations in North Dakota, North Carolina, Georgia, and Kentucky, said it was 100% net carbon neutral, with 56% of its electricity coming from sustainable sources, including solar, wind, hydro, and nuclear. It buys carbon credits to offset the rest.