By Sohini Podder and Noor Zainab Hussain
(Reuters) – Cipher Mining Inc mentioned it had agreed to go public by a merger with blank-check agency Good Works Acquisition Corp in a deal valuing it at $2 billion, underscoring the rising curiosity within the bitcoin area.
Shares of Good Works rose 15.9% to $11.59 after markets opened for buying and selling on Friday.
The bitcoin mining agency’s bid to go public comes as a clutch of different crypto companies are pushing forward with comparable plans regardless of regulatory uncertainty.
Coinbase, the largest U.S. cryptocurrency trade, moved a step nearer to itemizing its shares on the Nasdaq final month, however continues to be ready for regulatory clearances.
The unregulated nature of digital cash has historically made traders distinctly cautious of establishments that deal in them. Specialists consider profitable inventory market launches from the likes of Coinbase would assist change that notion.
Moreover, a call by the U.S. Securities and Trade Fee (SEC) on whether or not to approve crypto listings would function a serious win or blow to the legitimacy of digital cash.
“I do see a future the place the SEC will proceed to research and hopefully embrace bitcoin specifically. All of crypto is a a lot larger query,” Cipher Mining Chief Govt Officer Tyler Web page advised Reuters.
In January, cryptocurrency platform Bakkt additionally agreed to go public by a merger with a blank-check agency.
“We wished to get to market rapidly and effectively and after evaluating totally different paths, the SPAC market allowed us to get to market the quickest,” Web page mentioned, when requested why the agency selected the SPAC route.
The cope with Good Works will present the merged entity with gross money proceeds of $595 million, which incorporates $425 million from traders together with Constancy Administration & Analysis Firm and Morgan Stanley’s Counterpoint World.
The transaction is predicted to shut within the second quarter of 2021.
(Reporting by Sohini Podder and Noor Zainab Hussain in Bengaluru; Enhancing by Krishna Chandra Eluri and Anirban Sen)