Bitcoin mining company PrimeBlock goes public through $1.25 billion SPAC merger

On Friday, Bitcoin (BTC) mining company PrimeBlock announced that it is merging with the Special Purpose Acquisition Vehicle (SPAC) company 10X Capital Venture Acquisition Corp II. The deal places PrimeBlock at an enterprise value of $1.323 billion and is expected to close in the second half of the year.

The company has installed 1.8 exahash per second from BTC self-mining company, accounting for about 0.89% of the total hash rate of the Bitcoin network. According to PrimeBlock, the breakeven price for mining is $9,000 per coin. By 2020, up to 59% of its energy sources were carbon-free. The company aims to be carbon neutral on a net-zero basis by 2050.

Last year, PrimeBlock brought in $21.8 million in revenue through mining of 356.8 BTC. But in 2022, the company expects to generate $220.1 million in revenue, or a forecasted 3,629 BTC, in part by rapidly expanding its mining capabilities to over 10 exahash per second. It also has a small Ethereum (ETH) mining operation, extracting 699 of such digital assets by 2021.

Regarding the business agreement, Hans Thomas, Chairman and CEO of 10X Capital, noted:

“Gaurav and the leadership team […] successfully deployed more than 110 megawatts of data center capacity and generated more than $24 million in revenue in the fourth quarter. They have built strong relationships with key partners […] with a commitment to have net zero carbon emissions by 2050.”

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