Breaking: Bitcoin Mining Firm Cipher Set to Go Public at $2 Billion Valuation With SPAC Merger

Breaking: Bitcoin Mining Firm Cipher Set to Go Public at $2 Billion Valuation With SPAC Merger

Cipher Mining, a bitcoin mining subsidiary of mining hardware manufacturer Bitfury is all set to go public with a $2 billion valuation. The firm would merge with Special Purpose Acquisition Company (SPAC) Good Works Acquisition Corp for its public listing. SPACs have become quite a rage over the past year and crypto companies seem to be taking the same route for their public listing instead of direct listing.

The merger and subsequent listing are expected to commence by the second quarter of 2021 making it the second crypto company after Bakkt to go public via the SPAC merger. J.P. Morgan Securities LLC is serving as the exclusive advisor and lead placement agent to Good Works, and Wells Fargo Securities, LLC is serving as lead financial advisor to Cipher Mining.

Good Works Co-Chairman Doug Wurth said,

“We were attracted to Cipher Mining as we believe the Bitcoin mining space represents a compelling way to gain risk-adjusted exposure to the growing crypto ecosystem,”

Cipher Mining Would Become the Largest Bitcoin Mining Firm in the US

Cipher Mining with an estimated valuation of $2 billion would become the largest bitcoin mining company in the US with a potential capacity of 745MW (Megawatts).The CEO of Cipher Tyler Page believes the US could become the Bitcoin mining hub as it offers low-cost reliable power and a stable and secure regulatory and corporate environment. Page said,

The combination of various factors positions the US to become the leading Bitcoin miner and also enables future vertical integration opportunities across the Bitcoin ecosystem,

The recent crackdown on Bitcoin mining farms in China which is currently the epic center of Bitcoin and cryptocurrency mining could also help the US Bitcoin mining market to grow further and subsequently decentralize the mining operations concentrated in China. Many other nations including Iran, Kazakistan, and few others with abundant clean energy supply are working towards favorable regulations for Bitcoin mining to lure more companies.