Bitfury Group, a leading crypto mining firm, is planning to launch Europe’s biggest float in the crypto sector, via an initial public offering. According to a report by The Telegraph, Bitfury has been planning the float for at least the last 12 months. They are allegedly working with Deloitte, who have been reviewing the company to gauge their readiness to go public.
It Would Be The Largest Float In The Crypto Sector
If it decides to go public, the float could be valued at over $1 billion. Bitfury’s headquarters are in the Netherlands, but they operate out of the UK. During their last fundraising round, the company was valued at around $1 billion. If they decide to go public, they would be seeking a higher valuation than that.
According to reports filed by the company, its investors include Macquarie -an Australian investment bank, and Galaxy Digital-the investment fund headed by Mike Novogratz. In 2019, its total revenues were $149 million.
An IPO of Bitfury stock would be the biggest ever of a European cryptocurrency company. However, it would not be the first. Coinbase, the US crypto exchange, already held a major IPO, which was valued at over $50 billion.
While no major details have been revealed, the Telegraph report states that they could hold the IPO in the UK or the Euronext exchange in Amsterdam. Bitfury already spun off a division called Cipher Mining via a special purpose acquisition deal. Cipher is currently listed on Nasdaq where it is valued at over $2 billion, with Bitfury listed as a minority shareholder.
Bitfury is not the only Bitcoin mining company in the EU to launch an IPO. Argo Blockchain, a company in the crypto mining sector, is already listed on Aim Exchange. In the past year, its shares have risen over 2000% as investors try to find a way to enter the crypto industry. Argo Blockchain has been quite successful, they already have a deal in the works to launch a crypto mining facility in Texas.
Bitfury was founded by Valery in 2011. They focus on deploying crypto mining infrastructure, which is needed to mine proof of work coins such as Bitcoin. Bitfury has set up mining facilities in Central Asia, Norway, Canada, and Iceland. All of these are regions of the world with cheap power and favorable legislation.
Canada and Iceland are increasingly becoming favorable due to their conducive cold wealth that lowers the power bill for cooling the miners. Besides operating mining rigs, Bitfury is also in the data center business. They set up mini data centers that operated from shipping containers, which owners can use to mine cryptocurrency.
The Current State Of Bitcoin
Bitcoin mining has been a contentious issue in some places because of the amount of power needed to mine each coin. In total, the Bitcoin network requires more energy to keep it running than some small countries, and cities. However, in places with cheap power and unused potential, it is seen as a solution to monetize unused excess capacity.
Despite the lack of uniform legislation globally, Bitcoin has proven resilient to centralized decision-making processes. Its price has continued to soar and currently stands at a five-month high of around $54K.
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