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Bitfury Unit to Merge With SPAC to Create Bitcoin Mining Company With $2B Enterprise Value
The mining SPAC has an expected value of $2 billion.
Cipher Mining Technologies, a newly formed U.S.-based bitcoin mining operation formed from bitcoin mining hardware giant Bitfury and Good Works Acquisition (Nasdaq: GWAC), a special purpose acquisition company, said they've agreed to merge.
STORY CONTINUES BELOW
- The combined company has an enterprise value of $2 billion, according to the release.
- The fully committed PIPE investment is secured with anchor investors, including Fidelity Management & Research Company and Counterpoint Global (Morgan Stanley).
- Cipher is expected to receive $595 million in gross cash proceeds from a combination of cash from a $425 million fully committed stock PIPE, including a $50 million investment in-kind from Bitfury, and $170 million in cash held in Good Works’ trust account from its initial public offering in October 2020.
- Both companies said the newly formed operation is expected to have a mining capacity of 745MW by the end of 2025 and energy costs of approximately 2.7c/kWh.
Kevin Reynolds
Kevin Reynolds is editor-in-chief at CoinDesk. Prior to joining the company in mid-2020, Reynolds spent 23 years at Bloomberg, where he won two CEO awards for moving the needle for the entire company and established himself as one of the world's leading experts in real-time financial news. In addition to having done almost every job in the newsroom, Reynolds built, scaled and ran products for every asset class, including First Word, a 250-person global news/analysis service for professional clients, as well as Bloomberg's Speed Desk and the training program that all Bloomberg News hires worldwide are required to take. He also turned around several other operations, including the company's flash headlines desk and was instrumental in the turnaround of Bloomberg's BGOV unit. He shares a patent for a content management system he helped design, is a Certified Scrum Master, and a veteran of the U.S. Marine Corps. He owns bitcoin, ether, polygon and solana.
