Bitfury’s Bitcoin Mining Subsidiary to Go Public at $2 Billion Valuation Bitfury’s Bitcoin Mining Subsidiary to Go Public at $2 Billion Valuation

  Back

Bitfury’s Bitcoin Mining Subsidiary to Go Public at $2 Billion Valuation

updated on:6 Mar 2021

Cipher Mining, a subsidiary of Bitcoin mining hardware provider Bitfury, is set to go public with a $2 billion valuation.

The mining firm today announced that it has entered a definitive agreement for a business combination with Good Works Acquisition Corp, a special purpose acquisition company. Cipher Mining is a subsidiary of Bitfury, a provider of Bitcoin mining hardware and other blockchain software.
Since 2011, the Bitfury Group has mined over 600,000 Bitcoin. Cipher, as a standalone company, is projected to become the largest-scale mining platform in the US, with a potential capacity of 745MW (Megawatts) by 2025.

The Cipher-Good Works transaction valued the combined company at $2 billion. Following the transaction, the combined company is expected to receive approximately $595 million in cash proceeds. This comprises various investments, including a $25 million fully committed pipe investment. The transaction itself is expected to close in Q2 of 2021. 
In a press release, Cipher Mining CEO Tyler Page argued that historically, the Bitcoin mining industry had played host to “smaller, poorly capitalized, less experienced companies that were not fully equipped to manage the underlying price swings associated with Bitcoin.”
Page also suggested that Cipher Mining’s US domicile presents additional advantages. These include low-cost reliable power, and a stable and secure regulatory and corporate environment. “This combination of factors positions us to become the leading Bitcoin miner and also enables future vertical integration opportunities across the Bitcoin ecosystem,” he said.

Share this Blog with your friends

0 Comments

No Comments

Suggested Content

Bitcoin 'Doesn’t Fulfill Basic Properties of Money': ECB Board Member

updated on:10 Apr 2021

Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), has described Bit

Continue Reading

Bitcoin ETF Approval Will Happen: Morgan Creek’s Mark Yusko

updated on:9 Apr 2021

Morgan Creek Capital Management CEO Mark Yusko has expressed his confidence that a Bitcoin ETF will

Continue Reading

Ukrainian Officials Own $2.67 Billion in Bitcoin: Report

updated on:9 Apr 2021

Civil servants and officials in Ukraine are holding a significant amount of Bitcoin (BTC) and other

Continue Reading

JP Morgan's Jaime Dimon: Bitcoin Regulation a ‘Serious Emerging Issue’

updated on:8 Apr 2021

The legal and regulatory status of Bitcoin and other cryptocurrencies is something that needs to be

Continue Reading

Bitcoin Toys With $60k, BNB Hits All-Time High and Ethereum Creeps Past $2,000

updated on:3 Apr 2021

It’s all systems go for the crypto market.  Binance Coin hit a new all-time high of $3

Continue Reading