BitFuFu to go public via SPAC merger

Cloud-mining services provider BitFuFu plans to go public through a merger with SPAC-backed Arisz Acquisition Corp., according to a press release.

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The combined company’s shares will trade under the ticker FUFU. Nasdaq listing is expected in the third quarter of 2022.

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The estimated valuation of BitFuFu Inc is $1.5 billion. According to the provider, this figure is 4.6 times the projected revenue for the current year, which is expected to be about $330 million if Bitcoin remains above $45,000.

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BitFuFu is the sole strategic partner of Bitmain in cloud mining. The SPAC deal includes financing of $70 million (based on $10 per share), provided by the mining equipment manufacturer and its Antpool-owned pool.

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According to the press release, the merger will bring BitFuFu more than $129 million in cash after accounting for deal-related expenses and assuming there are no share redemptions by Arisz’s existing shareholders.

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The proceeds will be used to purchase mining equipment and build out the infrastructure.

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In December 2021 BitFuFu shut down devices located in Kazakhstan due to power-supply problems in the country and began relocating equipment to the United States.

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On January 21, 2022, the provider said that the relocation had been completed and the hash rate restored.

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The mining company Stronghold Digital Mining conducted an IPO on Nasdaq, listing 6,687,305 Class A shares at $19.

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Earlier on January 20, on the same exchange under the ticker CORZ the securities of the blockchain-hosting provider Core Scientific began trading.

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