Prime Blockchain Inc., a bitcoin mining startup has agreed to go public in the US.
Prime Blockchain Inc., a bitcoin mining and infrastructure startup, agreed to go public in the United States on Friday to merge with a blank-check firm in a deal that would value the combined company $1.25 billion, including debt. .
The company, which does business as PrimeBlocks and operates data centers and crypto mining operations in North America, has secured $300 million in equity financing for the deal from an affiliate of Cantor Fitzgerald & Co.
The merger with 10X Capital Venture Acquisition Corp II is expected to close by the second half of this year, after which the combined company will be listed on Nasdaq and will be headed by PrimeBlock CEO Gaurav Budhrani.
PrimeBlock’s decision to go public comes at a time when mergers with blank-check firms, or special purpose acquisition companies (SPACs), have been slow, due to a regulatory crackdown that was giving investors a raw deal.
The U.S. Securities and Exchange Commission recently unveiled a new draft rule that would require SPACs to disclose more information about their sponsors, their compensation, conflicts of interest and share dilution, to prevent such companies from being overly optimistic. to prevent the release of income estimates.