Bitcoin Mining Firm BitFuFu Eyes IPO via SPAC Merger Hinting Higher Demand
Highlights
- Bitcoin Mining firm BitFuFu is eyeing an initial public offering in the US via a SPAC merger.
- In the first half of 2023, BitFuFu made $134 million in revenue from cloud mining and proprietary mining
- In anticipation of the much awaited halving event next year, the Bitcoin network has demonstrated enhanced resilience as evidenced by the hash rate reaching an all-time high.
Bitcoin Mining firm BitFuFu is planning to list on Nasdaq in the US via a SPAC merger. The company had previously filled a form F-4 with the SEC which was approved on Wednesday, strengthening the chances of the firm going public. The IPO will also come at a time when Bitcoin Mining has been steadily increasing in the past year.
BitFuFu to go public via SPAC
BitFuFu’s SPAC deal and subsequent IPO also indicate a mainstream acceptance and demand for Bitcoin companies. The upcoming performance of major publicly listed crypto companies also cements the idea that the market has grown more curious about crypto firms.
BitFuFu had previously filled out an F-4 form with the SEC in December of 2023. The filing was accepted on Wednesday indicating that the company will soon proceed with the deal and the IPO. According to the same filing, BitFuFu will now trade under the ticker FUFU on Nasdaq.
In the first half of 2023, BitFuFu made $134 million in revenue from cloud mining and proprietary mining, according to the F-4 filing.
BitFuFu’s IPO comes as Bitcoin mining picks up pace
Over the past few years, there has been an increase in demand for Bitcoin mining. A greater number of mining sets are needed to meet the increasing demand for Bitcoin as it reaches the market. By evaluating the Bitcoin Mining hash rate, one can gain a clear grasp of this.
According to reports, the current Bitcoin Network Hash Rate is 638.05M, up from 289.51M a year ago. This represents a shift of 120.4% from a year ago signifying greater demand. In anticipation of the much-awaited halving, the Bitcoin network has demonstrated enhanced resilience. The fact is evidenced by the hash rate reaching an all-time high.
Crypto gets mainstream traction
BitFuFu’s IPO is also a symbol of a more mainstream demand for crypto-related assets. This could be in the form of Bitcoins, stocks, or even ETFs.
According to an EY report, crypto-assets used to be on the periphery of financial services, but in recent years, several varieties have been more widely accepted. It should come as no surprise that measures to strengthen efforts to guarantee investor and economic security have drawn increased attention from regulators around the world.
The same trend can be observed with CoinBase. According to Yahoo Finance, 2023 ended up being a banner year for Coinbase. The stock rose more than 400% in value. In the upcoming year, the market is anticipating more such IPOs that strengthen the idea of crypto firms getting more mainstream.
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