Cipher Mining Technologies Inc, a newly formed US mining subsidiary of Bitfury Top HoldCo BV, entered into a definitive merger agreement with the Nasdaq-listed firm Good Works Acquisition Corp, a SPAC created for acquisitions.
The deal is expected to close in the second quarter of 2021, and the combined Cipher Mining Inc will be valued at $2 billion and will trade on Nasdaq under the ticker CIFR.
According to the press release, another subsidiary of the group, Bitfury Group, has been operating in the mining business since 2011. Since its inception, the company has deployed more than 500 MW of mining capacity and mined more than 600,000 BTC.
The plan is for Cipher, as an independent company, to raise its capacity to 745 MW by the end of 2025. By the second quarter of 2022, the firm is expected to deploy data centres in the United States with a total consumption of 445 MW. Cipher said that it would have access to electricity at a price of $0.027 per kWh.
Bitfury Group will supply the new company with in-house manufactured mining equipment.
Gross revenue from the merger and stock swap is expected to be $595 million. Investments in Cipher from anchor investors, including Fidelity Management & Research Company and Counterpoint Global (Morgan Stanley), total $425 million. This sum includes a $50 million investment by the parent Bitfury, structured as a loan for future purchases of operating services and equipment.
In February, amid a rally in Bitcoin’s price, publicly listed mining-industry shares in the United States demonstrated explosive growth.
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