Bitcoin Mining Startup Primeblock to Go Public via SPAC Merger as SEC Targets SPAC Deals

The bitcoin mining startup Primeblock has announced plans to go public via a special purpose acquisition company (SPAC) deal. Primeblock will merge with a blank-check firm 10X Capital Venture Acquisition Corp. II, and the company’s shares will be listed on Nasdaq.

Primeblock Reveals SPAC Merger With Plans to Be Listed on Nasdaq in the Second Half of 2022 — SEC Targets SPACs, Shell Companies, and Projections

• Another bitcoin mining firm is going public and will be listed on the Nasdaq stock exchange. Primeblock revealed a SPAC merger with 10X Capital and the merger should be complete by the end of Q2 2022.
• Primeblock will join a number of mining operations that have already gone public. Companies such as Riot Blockchain and Marathon Digital Holdings are listed on Nasdaq.
• The deal with 10X Capital, will bring Primeblock’s overall valuation including debt up to $1.25 billion. The company further explained during the SPAC merger announcement that it had secured $300 million in equity financing from the firm Cantor Fitzgerald & Co.
• Primeblock operates data centers in North America and the website explains it had 1,000 petahash of hashrate. That equates to 0.6% of Bitcoin’s global hashrate today and Primeblock details it has over 70 megawatts of capacity across the company’s mining facilities.
• The mining operation offers hosting services, equipment supply chain resources, logistics, and mining containers. “Primeblock’s fully integrated approach to mining and digital infrastructure is a critical advantage that ensures industry-leading deployment lifecycle from planning to complete setup,” the company’s website explains.
• Following the merger, the company will be led by Primeblock’s chief executive officer Gaurav Budhrani.

• Primeblock follows a slew of crypto firms that have gone public and more specifically firms that have leveraged a special purpose acquisition company deal. Firms like Griid, Apifiny, Circle, Bitdeer, and Coincheck have all utilized SPAC deals.
• However, the U.S. Securities and Exchange Commission recently revealed new draft reforms for SPAC disclosures. SPAC deals could face legal challenges if the proposals are enacted and SPACs will have to disclose a lot more financial information concerning sponsors and blank-check firms.
• “The Securities and Exchange Commission is proposing rules intended to enhance investor protections in initial public offerings by special purpose acquisition companies (SPACs),” the U.S. regulator’s proposed rules document notes.

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