Bitcoin Mining Company Core Scientific To Go Public via $4.3 Billion Merger with BlackRock-Backed SPAC

July 21, 2021 12:27 PM EDT

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Core Scientific Holding, a blockchain and cryptocurrency mining company, announced today it is merging with a special purpose acquisition company (SPAC) Power & Digital Infrastructure Acquisition Corp. (Nasdaq: XPDI).

The deal values the former at $4.3 billion and will bring the crypto miner $300 million in cash proceeds. Interestingly, the company didn’t provide any details on private investment in public equity (PIPE) investors.

"We have built the largest blockchain hosting provider and digital asset miner in North America. Our diversified business is positioned to continue supporting the growth and adoption of digital assets globally. We are successfully leveraging our first mover advantage, scale, proprietary designs and software, network of strategic relationships, and culture of innovation to create value for our customers and stakeholders. With our pending acquisition of Blockcap, we look forward to growing our self-mining digital asset business while continuing to deliver best-in-class reliability and performance to leading blockchain innovators,” said CEO of Core Scientific Mike Levitt.

The Texas-based company, which is considered to be the largest North American miner, had mined 928 bitcoins in Q2 and expects to generate $493 million and $1.1 billion in sales for fiscal 2021 and 2022, respectively. The company claims it is 100% carbon-neutral.

"Core Scientific's blockchain infrastructure business is unparalleled, backed by more than 70 blockchain and infrastructure-related patents and applications, and led by an amazing team, which now will be creating value for our collective stakeholders. We are proud to unite our companies and move forward into the capital markets,” said Darin Feinstein, co-Founder of Core Scientific.

Power & Digital generated $345 million via an oversubscribed initial public offering (IPO) back in February. BlackRock (NYSE: BLK) is the anchor investor in XPDI.

Earlier this month, Peter Thiel-backed Bullish agreed to go public via a $9 billion SPAC merger.

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