Cipher Mining Technologies Inc., a subsidiary of Bitfury, has inked a $2 billion merger deal with Nasdaq-listed Good Works Acquisition Corp, a special purpose acquisition company (SPAC). Both companies have entered into a business combination agreement.
It has been reported that the merger will see Bitfury’s US Bitcoin (BTC) mining enterprise become a publicly-listed company under the banner Cipher Mining Inc.
However, investors like Morgan Stanley-backed Counterpoint Group and Fidelity Management and Research company will also lead a $425 million funding round.
The report said that this additional cash influx will proceed through a private investment in public equity (PIPE) funding round.
Bitfury will also provide a $50 million investment-in-kind to add to the $170 million leftovers from the October 2020 Good Works initial public offering, setting the combined company’s gross cash holdings at $595 million.
Tyler Page, the CEO of Cipher Mining, remarked that the deal was a significant step in the emergence of properly capitalized Bitcoin mining enterprises.
“With this transaction, we will be able to combine the formidable skill sets and technologies developed by Bitfury Group over the past 10 years with what we believe will be a leadership position on the global cost curve, and thereby create a true leader in the Bitcoin mining industry.”
Likewise, with the merger expected to close in Q2 2021, Cipher is looking to achieve a 745 megawatts mining capacity by end of 2025.
The company says it hopes to cross the 445 MW milestone between the end of 2021 and Q2 2022.
Moreover, with designs towards 745 MW in mining capacity, Cipher is also the latest example of the expanding Bitcoin mining outlay in North America. While China still dominates the BTC hash rate distribution, firms in the US and Canada are reportedly increasing their inventory in the quest to dilute China’s control of the Bitcoin mining arena.
Thus, Chinese miners are coming under significant regulatory pressure from municipal authorities.