Eco-Friendly Crypto Startup Chia Network Pursues U.S. IPO With Confidential Filing Here’s the Latest

[ad_1]

Image source: Shutterstock

Blockchain and smart contract platform Chia Network has confidentially submitted a draft registration statement to the Securities and Exchange Commission, moving closer to an initial public offering in the United States.

In a press release on Friday, the crypto startup revealed that it had submitted a draft registration statement on Form S-1 for a proposed IPO to the SEC.

Chia added that the size and price range of the proposed IPO has yet to be decided.

The blockchain platform said the IPO “is expected to begin after the SEC completes its review process.”

Founded by BitTorrent creator Bram Cohen, Chia provides a regulation-compliant blockchain setting the standard for digital currency infrastructure and inclusive access to decentralized global finance.

The crypto startup raised $61 million from investors including Richmond Global Ventures and Andreessen Horowitz in 2021, doubling its valuation to around $500 million in the funding round, as reported by Bloomberg.

At the time, Gene Hoffman, Chia’s president and chief operating officer, said the company was considering a traditional IPO to expand its operations and clarify its regulatory environment.

“Our goal has always been to go public relatively quickly because it will significantly clarify our regulatory environment and allow customers to use the coin to hedge public market volatility, which is different from other coins.”

Chia’s native token XCH jumped over 11% after the news.

At the time of writing, the token is trading at $45.97, up 11.4% over the past day. However, it is down a staggering 97% from its all-time high of $1,645.12 recorded in May 2021.

More Crypto Firms Are Aspiring to Go Public

Apart from Chia, a number of other crypto companies have also searched the public markets.

Jesse Powell, co-founder of cryptocurrency exchange Kraken, said the company was positioning itself for an IPO in September last year when he announced he was stepping down as CEO.

Earlier this week, Singapore-based bitcoin mining company Bitdeer Technologies Group announced that it was going public after completing a merger with a special-purpose acquisition company. The company originally planned to go public in November 2021.

With its Nasdaq listing, Bitdeer joins crypto-mining companies Riot and Marathon, both of which have already gone public.

It should be noted that crypto-related businesses that have gone public have faced many challenges.

For example, Coinbase Global recently received a so-called “Wells Notice” from the SEC, which threatens the crypto exchange with legal action regarding some of its listed digital assets, its Coinbase Earn staking service, Coinbase Prime, and Coinbase Wallet.

[ad_2]