Bitcoin Miner Cipher Going Public Backed by Fidelity and Morgan Stanley – Mining Bitcoin News

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Cipher Mining, a Bitcoin mining company owned by Bitfury, has announced that it will go public through a merger with a Special Purpose Acquisition Company (SPAC). The deal values ​​the combined company at $ 2 billion, funded by investors such as Morgan Stanley and Fidelity.

  • Cipher Mining Technologies Inc., a newly formed US Bitcoin mining company owned by Bitfury, announced on Friday that through a merger with Good Works Acquisition Corp. (Nasdaq: GWAC) will go public. The transaction is expected to close in the second quarter.
  • According to Cipher Mining, the deal valued the combined company at $ 2 billion and “will generate gross proceeds of $ 595 million for the combined company, including $ 425 million from investors such as Fidelity Management & Research Company and Morgan Stanley’s Counterpoint Global, “reported Reuters. The deal is also supported by 25 other institutions.
  • The merged company, named Cipher Mining Inc., is expected to be listed on the Nasdaq under the new ticker symbol CIFR. JP Morgan Securities and Wells Fargo Securities are acting as financial advisor to Good Works and Cipher Mining, respectively.
  • The new company “is being formed as an industrial bitcoin mining company,” said Cipher Mining, adding that its “goal is to be the leading bitcoin mining company in the US.” Initially, four data centers are planned in Ohio and Texas.
  • According to the announcement, as an independent company, the new company will “have the potential to achieve a cumulative operational capacity of 745 MW by the end of 2025”. In addition, the US-based data centers are expected to go into operation between the 4th quarter of 2021 and the 2nd quarter of 2022 with a total capacity of 445 MW and the planned expansion by a further 300 MW, which will be made available between 2023 and 2025.
  • Good Works is a publicly traded Special Purpose Acquisition Company (SPAC) with trust assets of approximately $ 170 million. SPACs are shell companies that raise funds to buy a private company in order to take it public. This enables target companies to bypass a traditional initial public offering (IPO).

What do you think of this Bitcoin mining company’s IPO? Let us know in the comments below.

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