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Bitcoin miner PrimeBlock will list on Nasdaq in $1.25B SPAC merger

01 Apr 2022 : 15:31
2 min read
  • PrimeBlock will go public through a merger with 10X Capital Venture Acquisition Corp. II, with an enterprise value of $1.25 billion
  • The merger is expected to be closed in the second half of 2022 and the merged company will trade on the Nasdaq
  • Many crypto firms plan to go public this year through SPACs

PrimeBlock, a Bitcoin mining company, has agreed to a merger with 10X Capital Venture Acquisition Corp. II (VCXA), a special purpose acquisition company (SPAC).

PrimeBlock is planning to go public

After Bloomberg reported last year that the deal would be valued at about $1.5 billion and that SPAC planned to raise at least $150 million for the transaction through private investment in public equity (PIPE), PrimeBlock announced that it had received $300 million in committed equity financing from Cantor Fitzgerald affiliate CF Principal Investments LLC and that the combined company will have an estimated enterprise value of $1.25 billion after the transaction closes. Gaurav Budhrani, a former Goldman Sachs investment banker, will lead the combined company.

According to the report, PrimeBlock generated $24.4 million in revenue in the fourth quarter of 2021, has 110 megawatts of installed data center capacity across its 12 North American facilities, and sources about 60% of its electricity from carbon-free sources, with plans to offset the rest. The merger is expected to be closed in the second half of 2022 and the merged company will trade on the Nasdaq.

What’s the deal with all these SPACs?

Last week, Coincheck, one of Japan’s largest crypto exchanges, announced plans to go public via a Nasdaq-listed SPV, and numerous other crypto companies, including Bullish, Circle, and Bitdeer, have expressed interest in the SPAC model, but why is it so popular? Well, SPAC IPOs can be much faster than traditional IPOs, as a SPAC merger typically takes 3-6 months, while an IPO typically takes 12-18 months.

SPACs have recently attracted the attention of regulators because the fast-track process allows some companies to go public with grandiose projections, often without even a product. As a result, the SEC has proposed new guidelines for SPACs that would bring disclosure more in line with the traditional IPO process. It will be exciting to see how this affects the listings of many of these crypto companies.

About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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