Bitcoin mining firm Core Scientific is going public via SPAC in a $4.3 billion deal
By: Business Insider
July 22, 2021 at 10:13 AM EDT
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The mining firm will merge with Power and Digital Infrastructure Acquisition Company, whose anchor investor is BlackRock. Following the transaction, the combined company will operate as Core Scientific and trade on the Nasdaq exchange.
Core Scientific owns four US facilities where it operates proprietary mining facilities and hosts bitcoin and other digital asset mining hardware for customers. The company said it operates with 100% net carbon neutrality through using clean energy inputs and purchasing renewable energy credits.
The proceeds from the SPAC merger are expected to fund mining equipment purchases of and infrastructure build out.
The firm mined 755 bitcoin in the first quarter of 2021. Publicly traded competitor Marathon Digital Holding's mining fleet produced 196 newly minted bitcoins during the same period. Core Scientific also estimates it will boast a mining capacity of 510 megawatts by the end of the year through its four facilities.
For the first half of 2021, Core Scientific has mined 1,683 bitcoins total.
The merger is expected to be completed in the fourth quarter of 2021. Shares of Power and Digital Infrastructure Acquisition Company have jumped as high as 2% since the close Tuesday before the transaction was announced.