The US Bitcoin Mining Subsidiary of BitFury is planning to Go Public
As per the latest reports, Cipher Mining Technologies Inc. will be going through a merger deal with Good Works Acquisition Corp. It has been confirmed that the merger between the two companies has been linked through a $2 billion deal.
Cipher Mining Technologies Inc. exists as Bitfury’s subsidiary, which is a prominent firm known for its blockchain development projects. As for Good Works Acquisition Corp, it is a SPAC that is known as a special purpose acquisition company.
It has been confirmed that the type of agreement agreed between both companies is the business combination agreement.
The press release around the merger between the two companies was announced on Friday, March 5, 2021. As part of the merger, the SPAC “Good Works Acquisition Corp” would ensure that Cipher Mining Technologies Inc. becomes a public listed company on the stock exchange.
It has been confirmed that Cipher Mining Technologies Inc. will be listed as a public company under the banner “Cipher Mining Inc.”
Further details of the merger have also emerged since the initial announcement. The reports have just emerged that the combined valuation for the Cipher banner is set at $2 billion. Apart from that, a funding round will also be held that would be worth $425 million.
The names of the firms that will be leading the funding round have also be confirmed. Some of the most prominent leaders in the round include Fidelity Management and Research Company, a Counterpoint Group backed by Morgan Stanley.
The fate of the $425 million has already been decided by the firms as it will be used to aid the project further. The funding round will be conducted as part of the PIPE funding, where PIPE stands for private investment in public equity.
Apart from the above funding round, Bitfury has announced that it will also be making an investment-in-kind that would be for $50 million. It has been confirmed that the $50 million investment made by Bitfury will be added to the leftover amount of $170 million from Good Works IPO.
From the initial public offering (IPO) that Good Works held back in October 2020, the firm had a leftover of $170 million.
Following the announcement of the merger, Tyler Page, who is the CEO at Cipher Mining, shared his views about the deal. Page stated that the recent merger between the two companies holds true significance. The merger would ensure that the mining enterprises in the Bitcoin (BTC) mining sector get to emerge in the most efficient and astounding manner.
It is expected that the merger between the two companies will be coming to an end with the completion of the second quarter of 2021.