Cipher Mining Inc, the US-based Bitcoin mining company, announced on March 5 that it would go public through a merger with blank-check firm Good Works Acquisition Corp.
The SPAC merger deal is valued at $2 billion, the company said. The transaction, according to a Reuters report, is expected to close in the second quarter of 2021.
Subsequent to the merger announcement, shares of Good Works surged by 15.9 percent to reach $11.59 after markets opened for trading.
Cipher’s bid to go public comes at a time when other crypto firms are also planning a similar move, despite regulatory uncertainty.
Coinbase, the biggest US cryptocurrency exchange, is awaiting regulatory clearances after it moved closer to listing its shares on the Nasdaq in February 2021.
Following the Cipher-Good Works deal, the merged entity would be provided with gross cash proceeds of $595 million, which includes $425 million from investors including Fidelity Management & Research Company and Morgan Stanley’s Counterpoint Global.
With Reuters inputs.