Core Scientific, one of the largest mining companies in North America, plans to enter the stock market through a merger with Power & Digital Infrastructure Acquisition Corp.
According to CNBC, Core Scientific intends to list shares on the Nasdaq exchange and enter the stock market with the help of a specialized company for targeted mergers and acquisitions (SPAC). Core Scientific has already signed a $ 4.3 billion merger agreement with Power & Digital Infrastructure Acquisition Corp.
Core Scientific executives have yet to disclose listing details, ticker designation and opening date. Upon listing on the Nasdaq, Core Scientific will join the ranks of other publicly traded bitcoin mining companies in the United States. For example, Riot Blockchain and Marathon Digital Holdings are already listed on the Nasdaq.
Core Scientific CEO Mike Levitt said the company has mined over 3,000 BTC since early 2021 and now owns 1,683 BTC. In 2020, the revenue of the mining company amounted to $ 60 million. According to Levitt’s forecasts, in 2021 this figure will increase eightfold. This may be due to the termination of miners in China and their relocation to other countries.
After the merger and a possible $ 4.3 billion valuation of Core Scientific, the company’s market capitalization will be double that of other competitors such as Marathon and Riot Blockchain. In addition, Core Scientific has over 70 blockchain-related patents, Levitt added.
A few months ago, Fundstrat’s vice president of digital asset strategy, Leeor Shimron, said that investing in mining stocks was far more profitable than direct investments in bitcoin. This is due to the fact that tradable exchange-traded funds (ETFs) for bitcoin are not yet approved in the US, so buying shares of mining companies is one of the ways for institutions to enter the cryptocurrency market.