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Bitcoin miner PrimeBlock to go public via $1.25 billion SPAC deal

Bitcoin miner PrimeBlock to go public via $1.25 billion SPAC deal
Bitcoin miner PrimeBlock to go public via $1.25 billion SPAC deal   -   Copyright  Thomson Reuters 2022
By Reuters

– Prime Blockchain Inc, a bitcoin mining and infrastructure startup, on Friday agreed to go public in the United States by merging with a blank-check firm in a deal that would value the combined company at $1.25 billion including debt.

The company, which does business as PrimeBlock and operates data centers and crypto mining operations across 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 the Nasdaq and led by PrimeBlock Chief Executive Officer Gaurav Budhrani.

PrimeBlock’s decision to go public comes at a time when mergers with blank-check firms, or special purpose acquisition companies (SPAC), have slowed due to a regulatory crackdown sparked by concerns that investors were getting a raw deal.

The U.S. Securities and Exchange Commission recently unveiled a new draft rule that would require SPACs to disclose more details about their sponsors, their compensation, conflicts of interest and share dilution in an effort to curb such companies from issuing overly optimistic earnings projections.