The Bitcoin Mining startup PrimeBlock has recently announced the news of going public via a SPAC deal. With this, PrimeBlock will merge with a blank-check firm 10X Capital Venture Acquisition Corp. II.
SPAC stands for Special Purpose Acquisition Company. This company has no commercial operations and is formed to raise capital via an initial public offering (IPO). PrimeBlock revealed this merger with 10X Capital last week. Moreover, the company expects the deal to complete in the end of Q2 2022.
With this, PrimeBlock will become one of the few crypto mining companies that have gone public. As of now, Riot Blockchain and Marathon Digital Holdings are one of the companies that have gone public.
Interested users can purchase their shares on Nasdaq stock market exchange. Moving back to PrimeBlock, the merger will raise the company’s valuation including debt up to $1.25 billion. Also, the company has secured $300 million in equity financing from Cantor Fitzerald & Co.
PrimeBlock currently operates data centers in North America. According to their website, it has 1,000 petahash of hashrate. That amount is equal to 0.6% of Bitcoin’s global hash rate. Besides this, PrimeBlock has over 70 megawatts of capacity across its mining facilities.
Besides PrimeBlock, Griid, Apifiny, Circle, and Bitdeer have made SPAC deals in order to go public. However, the US Securities and Exchange Commission has introduced some new draft reforms for SPAC disclosures. Also, SPAC deals can face challenges if these reforms go ahead.
According to these new disclosures, SPACs have to disclose a lot more financial information concerning sponsors and blank-check firms.