Bitmain-backed cloud mining platform BitFuFu is preparing to go public in the U.S. through a merger with special-purpose acquisition vehicle Arisz Acquisition Corp.
- The combined company is expected to be renamed to BitFuFu Inc and will be listed on the Nasdaq in Q3 under the ticker FUFU, according to a press release shared with CoinDesk.
- The transaction includes a $70 million fully committed investment, led by Bitmain and mining pool firm Antpool, at $10 per share, the statement said. The merger will bring in over $129 million in net cash proceeds for BitFuFu, according to the press release.
- The merged firm will have pro forma value of $1.5 billion, 4.6 times the projected 2022 revenue, according to the release. Assuming that bitcoin prices go over $45,000, BitFuFu expects 2022 revenue to hit $330 million, up from $100 million in 2021, and its net income before deductions to be $100 million, according to the press release.
- The cloud mining platform offers users the ability to lease hardware and facilities from the firm. It expects to increase its hashrate to 10 exahash/second (EH/s) by the end of 2022, from 3 EH/s at the end of 2021. The bitcoin mining hashrate is a measure of computing power on the network.
- The deal is expected to be completed in Q3, pending regulator and stockholder approval. Existing BitFuFu stockholders will hold onto their equity in full, and BitFuFu’s management will remain at the company’s helm, the release added.
- Separately, BitFuFu said in its official Telegram group on Jan. 21 that its servers had been relocated to the U.S. from Kazakhstan and its hashrate has been restored. The company abandoned its operation in Kazakhstan because it was faced with electricity rationing.
- BitFuFu was founded in 2020 with investment from Bitmain, the world’s biggest crypto mining rig manufacturer. It is Bitmain’s exclusive cloud mining partner.
Read more: Bitmain-Backed BitFuFu Abandons Mining Rigs In Kazakhstan Due to Power Rationing