Today, Cipher Mining Technologies announced that it plans to go public via a merger with Good Work Acquisition Corp. Cipher Mining was recently formed as a subsidiary of Dutch Bitcoin mining company Bitfury.
“The combined company, to be named Cipher Mining Inc, is expected to be listed on the Nasdaq under the ticker symbol ‘CIFR,’” Reuters reported.
Following the merger with Good Work that values the combined company $2 billion, the merged company is expected to be the largest bitcoin mining operation in the U.S, according to the announcement. Merging with Good Works, a special purpose acquisition company (SPAC), allows Cipher to sidestep the traditional IPO system in going public.
The regulation and institutionalization of Bitcoin miners will allow investors to gain exposure via trusted and recognized avenues.
“We were attracted to Cipher Mining as we believe the Bitcoin mining space represents a compelling way to gain risk-adjusted exposure to the growing crypto ecosystem,” Good Works’ Doug Wurth stated in the announcement.
“The deal will provide the merged entity with gross cash proceeds of $595 million, which includes $425 million from investors including Fidelity Management & Research Company and Morgan Stanley’s Counterpoint Global,” Reuters reported.
The transaction is representative of the growing interest in regulated, Bitcoin-focused entities. As the economic incentive for Bitcoin mining grows, these institutionalized public businesses bolster the network and invite new investment in the space.
The merger is expected to be complete before the end of Q2 2021.