PrimeBlock, a bitcoin mining startup, will go public via a $1.25 billion SPAC merger

The company expects to bring in up to $98 million in revenue every year.

PrimeBlock, a Bitcoin (BTC) mining firm, said on Friday that it is merging with 10X Capital Venture Acquisition Corp II, a special purpose acquisition vehicle (SPAC). The transaction values PrimeBlock at $1.323 billion, and it is likely to close in the second half of the year.

The company has installed 1.8 exahash per second of Bitcoin self-mining hardware, which accounts for 0.89 percent of the Bitcoin network’s entire hash rate. The break-even price for mining, according to PrimeBlock, is $9,000 per coin. Up to 59 percent of its energy sources were carbon-free in 2020. By the year 2050, the company hopes to be carbon-neutral and net-zero.

PrimeBlock made $21.8 million in revenue last year by mining 356.8 BTC. However, by 2022, the company plans to produce $220.1 million in revenue, or 3,629 BTC, thanks in part to its rapid expansion of mining capacity to over 10 exahash per second. It also has a minor Ethereum (ETH) mining business, with 699 ETH extracted in 2021.

Hans Thomas, chairman and CEO of 10X Capital, commented on the business agreement:

“In the fourth quarter, Gaurav and the leadership team […] successfully deployed over 110 megawatts of data centre capacity and produced over $24 million in revenue. They’ve formed strong bonds with important partners […] and pledged to achieve net-zero carbon emissions by 2050.”

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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