Bitdeer, a cryptocurrency mining platform, will go public via a $4 billion SPAC merger

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Bitdeer Technologies announced on Thursday its intention to go public through a $4 billion merger with blank-check supplier Blue Safari Group Acquisition Corp.

The Singapore-based business, which was spun off from Chinese bitcoin mining juggernaut Bitmain in January, has been increasing its reliance on renewable energy sources for digital asset mining.

Blue Safari Group, a special purpose acquisition company (SPAC), went public in June with an initial public offering (IPO) of $57.5 million.

A SPAC is a publicly traded corporation that does not do business but maintains a pool of funds for the purpose of merging with a private company. As a result of the transaction, the private firm becomes public.

This year, several companies in the digital asset space went public utilising a blank check. Core Scientific Holding Co, a bitcoin miner, agreed to merge with a BlackRock-backed SPAC in July.

Bullish agreed to a $9 billion merger with a blank-check company the following month

Bitdeer wants to list on the Nasdaq stock exchange following the completion of the acquisition in the first quarter of next year.

Bitcoin, the most popular cryptocurrency, has experienced dramatic price swings in recent months. It fell below $60,000 earlier this week for the first time in more than two weeks, after reaching a record high of $69,000 on November 10.

For its first public offering (IPO), Bitmain has chosen Hong Kong

Bitmain Technologies, the world’s largest manufacturer of mining equipment, stated that its initial public offering will take place in Hong Kong, in what will be a critical test of institutional investors’ enthusiasm in the crypto sector.

Bitmain’s prospectus, which provides investors with their first formal look at the company’s financial health, was released late Wednesday, revealing a $742 million profit in the first half of this year. According to the paper, the company earns the majority of its revenue from the sale of bitcoin mining technology.

According to the corporation, the proceeds from the IPO will be utilised to invest in research and development and to boost industrial output.

Bitmain develops a variety of microchips for cryptocurrency and artificial intelligence applications, as well as hardware for cryptocurrency and artificial intelligence applications and the operation of crypto mining farms.

The IPO occurs at a time when the bitcoin sector is confronted with numerous hurdles

Bitcoin’s price has fallen 65 percent since its December 2017 high, and one bitcoin was trading at around $6,500 on Wednesday. This decline has hurt mining profitability, placing a damper on sales of mining equipment.

Additionally, given the Chinese government’ declared scepticism toward bitcoin, regulatory issues exist.

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