‘Green’ bitcoin mining company Griid to go public in $3.3B SPAC deal
“Green” bitcoin mining firm Griid Infrasture LLC is set to go public via a special-purpose acquisition company merger. Under the merger deal, Griid will merge with Adit EdTech Acquisition Corp. to form a company with a market cap of about $3.3 billion.
The $246 million raised by Adit EdTech, which is listed on the New York Stock Exchange, will go to Griid, along with an existing $525 million credit facility. The money raised will be used to fund Griid’s growth.
Based in Cincinnati, Ohio, Griid describes itself as a profitable, vertically integrated bitcoin mining company. That in itself is not remarkable but, where Griid stands out is that it doesn’t just own and run bitcoin mining facilities but also claims to own energy infrastructure.
Griid pitches itself as being environmentally friendly in supporting the growth of carbon-free energy by procuring low-cost energy to build, manage and operate its integrated bitcoin mining facilities. The company already has 1,300 megawatts of power signed under agreement, of which 743 MW will be operational by 2023.
The company claims that with its green-friendly power, it will have a breakeven bitcoin product cost below its peers and a cost of scaled bitcoin production of under $6,255 per bitcoin. Bitcoin is currently trading at $57,305.
“We are building an American infrastructure company with the largest pipeline of committed, carbon-free power among public bitcoin miners at the lowest cost of scaled production,” Trey Kelly, chief executive officer of Griid, said in a statement. “Our team has demonstrated a track record of successful execution over the past three years since starting the company, and we look forward to delivering expansion of capacity through this transaction.”
According to CoinTelegraph, carbon-free energy is not the only thing Griid is claiming. The company is also saying that it has newly designed chips in its mining machines that can surpass one of the best application-specific integrated circuit Bitcoin mining devices out there, the S19 Pro.
Griid claims that its proprietary machine is 15% more efficient, 50% cheaper and results in 130% more gross profits per year.
It’s 2021 and a bitcoin mining firm full of promise going public via a SPAC is not at all surprising. However, any reasonable person will look at the company’s claims and think there’s some hype in there. Perhaps the skepticism is unfounded, but a $3.3 billion market cap on the NYSE is a lot of money to bet on a promise.
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