This Cryptocurrency Mining Company Is Going Public Through a SPAC

What occurred

Good Works Acquisition Company (NASDAQ:GWAC), a particular function acquisition firm (SPAC), is shifting greater in the present day. As of three p.m. EST, shares of the clean verify firm had risen by about 13% for the day.

So what

The rationale for the SPAC’s transfer is that it introduced its acquisition goal, and buyers look like enthusiastic about it. Good Works will likely be merging with Cipher Mining, which is a subsidiary of Bitcoin (CRYPTO:BTC) {hardware} and software program maker Bitfury.

Picture supply: Getty Pictures.

Cipher Mining’s imaginative and prescient is to develop into the largest-scale Bitcoin mining platform in the US, with as a lot as 745 megawatts (MWs) of deployed capability anticipated to roll out between 2021 and 2025. Nevertheless it’s essential to notice that Cipher is a newly shaped firm and does not but have any operations. Its first data-center mining operation is predicted to go surfing within the fourth quarter of 2021. The concept is that the corporate will leverage its relationship with {hardware} maker Bitfury, in addition to its scale, to create a aggressive benefit within the cryptocurrency mining enterprise.

The deal values Cipher at $2 billion, and this contains $595 million in money that’s anticipated to be injected into the enterprise upon the closing of the transaction. This consists of the $170 million Good Works raised in its SPAC IPO and a $425 million personal funding in public fairness (PIPE).

Now what

The transaction is predicted to be finalized within the second quarter, and if the current surge in cryptocurrency curiosity (and values) continues, Cipher has vital value-creation potential. However like all pre-revenue firm, it is a extremely speculative funding and needs to be approached with that in thoughts.