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Cipher Mining Inc., a Bitcoin mining firm, mentioned as we speak that it might merge with Good Works Acquisition Corp. (Nasdaq: GWAC), a particular objective acquisition firm (SPAC). The mixed merger will enable Cipher to develop into a publicly-traded firm.
Good Works’ co-chairman, Doug Wurth, mentioned that his firm was drawn to Cipher Mining as a result of the corporate “represents a compelling technique to acquire risk-adjusted publicity to the rising crypto ecosystem.”
The businesses anticipate the merger deal to shut within the second quarter of this yr.
Supply: Getty Photographs
Cipher Mining is Valued at $2 Billion within the Merger
Good Works and Cipher Mining will mix for a complete enterprise worth of $2 billion, in accordance with the press launch. The deal features a $425 million PIPE (personal funding in public entity) funding, of which $50 million will come from Cipher’s father or mother firm, Bitfury Group.
The mixed firm will obtain about $595 million in gross money from the deal, together with $170 million from Good Works’ belief account.
Cipher’s CEO, Tyler Web page, mentioned in a press release. “With this transaction, we will mix the formidable talent units and applied sciences developed Bitfury Group over the previous 10 years with what we imagine will probably be a management place on the worldwide value curve, and there create a real chief within the Bitcoin mining trade,”
Right here’s How the Present Shareholder Possession Can be Structured
Cipher mentioned that present shareholders of the corporate will develop into majority house owners of the mixed firm at closing, with about 70% possession. The corporate added that “all current shareholders and traders will proceed to carry their fairness possession topic to a two-year lock-up interval.”
Moreover, the PIPE traders will personal about 15% of the brand new firm, with Good Works taking 7.5% and Cipher staff taking about 7%. Till the merger closes you possibly can successfully personal Cipher Mining through buying shares of GWAC inventory.
Cipher Has a Multi-year Plan for Bitcoin Mining Growth
Bitfury, Cipher’s father or mother firm, was began again in 2011 and has mined greater than 600,000 Bitcoin because it started. As a subsidiary of Bitfury, Cipher’s enterprise focuses on the U.S. Bitcoin mining market and the corporate mentioned that it has the potential to succeed in a cumulative deployed capability of 745 megawatts (MW) of mining energy the tip of 2025.
Cipher mentioned that its U.S.-based knowledge facilities will come on-line between the fourth quarter of 2021 and the second quarter of 2022. These knowledge facilities could have a most energy capability of about 445MW. A further 300MW of energy will probably be added someday between 2023 and 2025, in accordance with the corporate.
Bitcoin Continues to Achieve Momentum
Bitcoin, and firms concerned in shopping for, promoting, and mining cryptocurrency, have gained loads of consideration from traders as the worth of Bitcoin has surged over the previous yr. The worth of 1 Bitcoin is at present $48,200, up from about $6,500 in March 2020.
With Cipher going public the Good Works SPAC, traders have one more avenue to put money into the extremely sought-after, but unstable, cryptocurrency market.
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