By Joseph Hall,
The initial public offering (IPO) for Texas-based Bitcoin miner Rhodium Enterprises is another feather in the cap for the Bitcoin-friendly southern State.
The first initial public offering (IPO) for the crypto industry in 2022 comes from a Texas-based Bitcoin (BTC) mining company, Rhodium Enterprises.
In an SEC filing made last week, Rhodium plans to offer 7.69 million shares at $12–$14 each in an IPO. Trading under the ticker “RHDM” on Nasdaq, 56.8 million class A and 67.5 million class B shares will be released, ultimately valuing the company at just shy of $1.7 billion.
Rhodium is a cryptocurrency technology company that uses proprietary tech and liquid cooling technology to self-mine Bitcoin. Their goal is to be the most sustainable and cost-efficient producer of Bitcoin in the industry.
The company joins a growing list of US-based companies that mine Bitcoin. Over the past three years, Marathon, Bitdeer Technologies, Riot Blockchain and Bit Digital listed on stock exchanges such as NASDAQ.
According to the filing, Rhodium currently runs 125 megawatts (MW) of mining power capacity at its first Texas site. Hence, 33,600 Bitcoin miners are running, churning out a total combined hash rate capacity of approximately 2.7 EH/s.
Following the IPO and a raise of $100 million capital, it will run a second site in Texas where they “expect to develop 225 MW of additional capacity.” By the end of 2022, the company will effectively more than double its current capacity.
Bearing in mind that the average cost per BTC in 2021 was about $47,000, their electricity cost basis is staggering:
“Our infrastructure platform allows us to mine Bitcoin at a significantly lower cost compared to the industry average. For the period from January 1, 2021, to September 30, 2021, our average electricity cost to produce one Bitcoin was approximately $2,507.”
Related: Mr. Wonderful plans to invest in mining company stocks
Texas continues to carve out a reputation as a Bitcoin mining-friendly state. In quarter four of 2021, Senator Ted Cruz commented that Texas should use Bitcoin mining to capture wasted natural gas while the Electric Reliability Council of Texas (ERCOT) anticipated that Texan Bitcoin mining power demands could jump five times by 2023.
Rhodium takes advantage of Texas’ “independent power market and abundance of low-cost renewable energy resources,” and pro-Bitcoin business environment.
Given the company’s experience with liquid-cooling technology and efficiency, for tiny Bitcoin miners seeking to solve valid blocks, it just got a bit harder.
The post Bitcoin miner Rhodium set for IPO, valued at $1.7 billion appeared first on Pre IPO Swap.