Crypto miner Core Scientific to go public via $4.3 billion SPAC deal


FILE PHOTO: A representation of the virtual cryptocurrency Ethereum is seen among representations of other cryptocurrencies in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

(Reuters) -Core Scientific Holding Co said on Wednesday it would go public through a merger with a blank-check company backed by BlackRock Inc, in a deal that values the cryptocurrency miner at $4.3 billion.

The deal with Power & Digital Infrastructure Acquisition Corp will fetch $300 million in cash proceeds, but the companies did not disclose a private investment in public equity (PIPE) round that typically accompanies blank-check mergers.

Core Scientific said it had mined 928 bitcoins in the second quarter and forecast revenues of $493 million and $1.1 billion for fiscal 2021 and 2022, respectively.

The company said it was 100% net carbon neutral and aims to remain so as it grows. Bitcoin is virtual but mining the asset consumes a lot of energy as it is created using high-powered computers around the globe.

Some cryptocurrency firms have recently managed to gain sky-high valuations, even as investor enthusiasm has waned for the digital assets whose values have plunged following global regulatory crackdowns.

Bullish, a crypto firm backed by billionaire entrepreneur Peter Thiel, agreed to a $9 billion blank-check deal earlier this month, while FTX Trading on Tuesday said its valuation had risen to $18 billion following a fresh funding round.

Despite the wild price swings in bitcoin, the most popular cryptocurrency, conglomerates like Japanese investment giant SoftBank Group Corp have given their seal of approval to some crypto firms including FTX and Mercado Bitcoin.

Special purpose acquisition company (SPAC) Power & Digital raised $345 million in an upsized initial public offering in February.

SPACs use the pool of capital raised through their IPOs to merge with a private company and take it public, typically within two years of listing.

(Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Robotic dogs: Useful hounds or dehumanising machines?
In the drone zone Premium
Google to slash amount it keeps from sales on its cloud marketplace- CNBC
Credit Agricole offers to buy auto leasing company Olinn for 100 million euros - Les Echos
U.K.'s Wise to join the New Payments Platform in Australia
Delete your Windows password: Microsoft rolls out log-in alternative
Electric cars have significantly higher repair costs, research shows
What to know: As robocalls get blocked, text messages could be next big thing for scammers
Those just-for-fun Facebook quizzes? Identity thieves might like them, too
Opinion: Media literacy the antidote to this infodemic

Stories You'll Enjoy


Vouchers