Cipher Mining Technologies Inc., the Bitfury subsidiary that developed the blockchain, has leaked a $ 2 billion merger agreement with Good Works Acquisition Corp, a Nasdaq-listed specialized acquisition company, or SPAC. Both companies entered into a business combination agreement.
As a result of the merger, the US Bitfury Mining Company (BTC) will become a registered company under the banner of Cipher Mining Inc.
In addition to Cipher’s total $ 2 billion valuation, investors such as the Morgan Stanley-backed Counterpoint Group and Fidelity Management and Research will also hold a $ 425 million funding round.
This additional cash flow will continue through private equity investments or the PIPE funding round. Bitfury will also provide a $ 50 million in-kind investment to add the $ 170 million remaining from Good Works’ initial public offering in October 2020, bringing the combined company’s cash balance to $ 595 million.
Commenting on the merger, Tyler Page, CEO of Cipher Mining, noted that the agreement was a significant step forward in capitalized Bitcoin mining, adding:
“With this deal, we will be able to combine the huge skill set and technology that Bitfury Group has developed over the past ten years with what we believe will take the lead on the global cost curve, thus creating a true leader in the bitcoin mining industry.” …
The merger is expected to be completed in the second quarter of 2021 and Cipher wants to achieve 745 megawatts of production by the end of 2025. The company says it hopes to surpass 445 megawatts between the end of 2021 and the second quarter of 2022.
Cipher is the newest bitcoin mining company to go public, albeit through a merger with the SPAC division. As Cointelegraph previously reported, Australian bitcoin miner Iris Energy was hired this summer to conduct an initial public offering of $ 39 million.
Cipher, with a design capacity of 745 MW, is also the latest example of the expansion of the bitcoin mining industry in North America. While China continues to dominate the distribution of BTC hashing frequencies, companies in the United States and Canada are reportedly increasing their assets in an effort to weaken China’s grip on bitcoin mining.
Meanwhile, Chinese mining companies are under intense pressure from local authorities. Earlier in March, there were reports of crypto workers planning to ditch Inner Mongolia over energy concerns.