On Friday, Cipher Mining Technologies announced that it has recently agreed to go public, doing so by way of a merger. This merger will occur with Good Works Acquisition Corp, a blank-check firm. Through this entire price, the enterprise value for Cipher has been set at $2.0 billion.
Some Cheeky Legal Footwork
This new combined company is set to receive $595 million in cash. This also includes the funding held by the Good Works trust account, valued at $170 million. Good Works managed to get this fund by way of its IPO, which had taken place back in October of 2020. All of this cash will be designated to build out the mining facilities for Cipher, and includes another $425 million contributed by investors, some of the big names being Morgan Stanley and Fidelity.
As for the finer details, Nasdaq will be where Cipher will be listed after the Good Works deal. This will allow the firm to make use of a backdoor listing to float its stocks. This will, in turn, allow Cipher and Good works to completely bypass the complex formal processes involved with an IPO, as the traditional route can take a significant amount of time and needs approval by an array of regulators. It should be noted that not everything’s all gung-ho, as the IPO still needs the SEC’s approval for it to actually go green.
A Long, Complex Story
Now, Cipher itself stands as a subsidiary to BitFury Group, a blockchain infrastructure provider. From now on, however, it will operate as a standalone company in its own right. It will serve as a Bitcoin mining arm centered around the US, with big plans in terms of processing power. Cipher aims to hold a cumulative capacity of 745MW by 2025’s end.
BitFury itself has an interesting history itself, which seems to be the trend with this entire subject matter. As it stands now, the firm boasts offices across the globe, and started out as a Bitcoin mining operation. Since then, it’s expanded dramatically, and now stands as one of the blockchain ecosystem’s largest providers in infrastructure. The group, based in San Francisco, provided both software and hardware centered around blockchain technology as a whole. This even includes investigative tools to track down suspicious activity within crypto-based networks.
Some Possible Past Regrets
It was back in 2019 when BitFury sold its joint crypto mining venture to Hut 8 Mining Corp, a company that has its ties within the crypto mining scene, and is based in Canada. At the time, this joint crypto mining venture was one of the largest in the entire North America. The price tag for such a thing only reached $7 million, however.