Core Scientific, one of North America’s top crypto miners, is going public via a SPAC merger, valued at $4.3 billion, according to a statement released on Wednesday.
About Core Scientific
Core Scientific is one of the leading suppliers of blockchain infrastructure, hosting, and mining operations in North America, with offices in North Dakota, North Carolina, Georgia, and Kentucky. Core will join the ranks of other publicly listed Bitcoin mining firms in the United States, such as Marathon Digital and Riot Blockchain (NASDAQ:RIOT), as a result of the SPAC acquisition and subsequent NASDAQ listing.
The mining company will combine with Power and Digital Infrastructure Acquisition Company, a BlackRock-backed company. Following the merger, the merged firm will trade on the Nasdaq under the name Core Scientific.
Core Scientific is North America’s biggest host of bitcoin mining equipment.
Core Scientific maintains four sites in the United States where it runs its own mining operations and rents out bitcoin and other digital asset mining equipment to clients. Through the use of clean energy inputs and the purchase of renewable energy credits, the firm claims to be carbon-neutral.
The revenues from the SPAC transaction will be used to acquire mining equipment and expand infrastructure.
In the first quarter of 2021, the company mined 755 bitcoins. Marathon Digital Holding, a publicly listed rival, created 196 new bitcoins within the same time period. Core Scientific also expects its four sites to have a total mining capacity of 510 megawatts by the end of the year.
Mike Levitt, the CEO of Core, stated in an interview that his firm has mined over 3,000 BTC and now has 1,683 BTC since the start of 2020.
In the fourth quarter of 2021, the merger is scheduled to be finalised. Power and Digital Infrastructure Acquisition Company’s stock has risen as much as 2% since Tuesday’s closing, just before the deal was announced.
Latest investment by Celsius of $54 million
Meanwhile, North American miners are hoping to profit from China’s ongoing anti-crypto mining campaign in order to boost their crypto revenues in 2021. Core is aiming for an eight-fold rise in income in 2021, compared to the $60 million it generated in 2020.
Celsius, a cryptocurrency lender, announced on Friday that it has invested $54 million in bitcoin (BTC, +1.78%) miner Core Scientific.
According to Celsius, the money is part of the company’s projected $200 million investment in bitcoin mining in North America. The investment, which took place in the second quarter, would make Celsius one of the major US investors in the bitcoin mining business, according to the company.