Crypto Miner PrimeBlock Seeks Nasdaq Listing In $1.3 Billion Deal

U.S. crypto miner PrimeBlock said on Friday it had entered a deal to merge with blank-check firm 10X Capital Venture Acquisition Corp. II. The deal was signed at an enterprise value of $1.25 billion.

PrimeBlock has over 110 megawatts worth of data centers across 12 facilities in North America, and mainly targets Bitcoin and Ethereum mining. The deal will be completed by the second half of 2022, and will see PrimeBlock listed on the Nasdaq exchange, the company said in a press release.

The merged firm will be led by PrimeBlock’s current CEO, former Goldman Sachs VP Gaurav Budhrani.

Speculation over the deal has been ongoing since November. PrimeBlock and 10X also said they had secured $300 million in equity financing from an affiliate of asset manager Cantor Fitzgerald & Co.

PrimeBlock joins a growing list of crypto firms on the Nasdaq

PrimeBlock, which generated $24 million in revenue for Q4 2021, will join a host of crypto firms on the Nasdaq. The technology-heavy exchange has attracted several entrants from the crypto industry, including world no. 2 exchange Coinbase, as well as miners Riot Blockchain and Marathon Digital.

A public listing allows firms to court vast amounts of public capital, enabling them to grow their operations substantially. But listing also places strict reporting requirements on firms, and subjects them to scrutiny from the Securities and Exchange Commission (SEC).

Blank-check firms to face increased scrutiny

Merging with a blank-check firm is a method of publicly listing that has grown in popularity over the past two years, given that it allows smaller firms to bypass the high disclosure requirements for a traditional IPO.

Several crypto firms have also listed through this method, the most recent example being  Japanese crypto exchange Coincheck, which said it will list on the Nasdaq through a $1.25 billion deal.

But this trend may be soon coming to an end. The SEC recently unveiled new rules to increase the amount of disclosures required by blank-check firms, Reuters reported. The move comes as a rising number of blank-check mergers saw their shares crash in a short period of time.

The post Crypto Miner PrimeBlock Seeks Nasdaq Listing In $1.3 Billion Deal appeared first on CoinGape.

Join us on Facebook

Cryptocurrency converter

Weekly Analysis

Quadency Review: Automated Crypto Trading Platform & Portfolio Management

Quadency is a digital asset management platform that provides automated trading and portfolio management solutions for both retail and institutional traders. The platform incorporates a...

Trade Like Her: $50,000 Giveaway

It’s International Women’s Day and Women’s History Month! Phemex is always hosting new events and campaigns to its dedicated users. In this special month,  Phemex...

3Commas vs Cryptohopper: Which is The Best Crypto Trading Bot Platform in 2022?

Automated trading platforms or ‘bots’ have become a popular way to trade cryptos. Instead of having to watch the crypto markets, and look for entry...

CoinRule Review: Automated Crypto Trading Bots Platform

Cryptocurrency traders can choose from a growing number of efficient, automated trading platforms that aim to simplify the entire process and allow anyone to make...

Bitrue fostering Cardano ecosystem growth with ADA base-pair listing

Bitrue, one of the fastest-growing cryptocurrency exchanges, has revealed the listing of ADA as a base currency on its trading platform from Thursday, February 24....

Phemex Exchange Adds SHIB, DYDX & FTM for Spot Trading

Phemex, the renowned crypto exchange and crypto futures trading platform announced back in November 26, 2021 the addition of three popular new assets for spot...