Crypto miner Core Scientific to go public via $ 4.3 billion SPAC deal

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FILE PHOTO: A depiction of Ethereum virtual cryptocurrency is seen among representations of other cryptocurrencies in this illustration photo taken on June 14, 2021. REUTERS / Edgar Su / Illustration

(Reuters) -Core Scientific Holding Co said on Wednesday it would go public through a merger with a blank check company backed by BlackRock Inc, in a deal that values ​​the cryptocurrency miner to $ 4.3 billion.

The deal with Power & Digital Infrastructure Acquisition Corp will bring in $ 300 million in cash, but the companies have not disclosed the private investment in public capital (PIPE) that typically accompanies blank check mergers.

Core Scientific said it mined 928 bitcoin in the second quarter and forecast revenue of $ 493 million and $ 1.1 billion for fiscal years 2021 and 2022, respectively.

The company has said it is 100% carbon neutral and intends to remain so as it grows. Bitcoin is virtual, but mining the asset consumes a lot of energy as it is created using powerful computers around the world.

Some cryptocurrency companies have recently managed to shoot skyrocketing valuations, even as investor enthusiasm has waned for digital assets whose values ​​have plunged following global regulatory crackdowns.

Bullish, a crypto firm backed by billionaire entrepreneur Peter Thiel, agreed to a $ 9 billion blank check deal earlier this month, while FTX Trading said on Tuesday its valuation rose to $ 18 billion. dollars as a result of a new round of funding.

Despite the sharp swings in the prices of bitcoin, the most popular cryptocurrency, conglomerates like Japanese investment giant SoftBank Group Corp have given approval to some crypto companies, including FTX and Mercado Bitcoin.

Special Purpose Acquisition Company (SPAC) Power & Digital raised $ 345 million in an initial public offering in February.

SPACs use the capital raised through their IPOs to merge with a private company and IPO, usually within two years of listing.

Report by Niket Nishant in Bangalore; Edited by Ramakrishnan M.

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