The merger with the SPAC will enable Prime Blockchain to go public, with a listing on the Nasdaq stock market
Prime Blockchain, an infrastructure provider for blockchain technology, has agreed to merge with blank cheque company 10X Capital Venture Acquisition, in a deal that values the combined entity at $1.25bn.
Based in California, Prime Blockchain owns and operates data centres and crypto-assets mining operations in North America. Its revenue for Q4 2021 was $24.4m.
The bitcoin miner is said to have more than 110MW of installed data centre capacity across 12 facilities in North America. The company’s focus is mainly on North Carolina, Kentucky, and Tennessee.
10X Capital Venture Acquisition is a special purpose acquisition company (SPAC) that is sponsored by 10X Capital.
The merger will enable Prime Blockchain to go public, with a listing on the Nasdaq stock market. The combined entity’s CEO will be Gaurav Budhrani, a former Goldman Sachs investment banking veteran, as well as the incumbent CEO of the bitcoin miner.
Budhrani said: “We believe the transaction will provide tremendous momentum for our next phase of growth. In addition, our partnerships with key suppliers are expected to enhance our ability to rapidly scale the business.
“We believe we are well-positioned to leverage our infrastructure and technology to provide PrimeBlock’s customers access to the underlying economics of public blockchains.”
The deal is backed by a committed equity financing facility of $300m from CF Principal Investments, an affiliate of Cantor Fitzgerald & Co.
The boards of the two merging firms have approved the transaction unanimously.
10X Capital chairman and CEO Hans Thomas said: “10X Capital is focused on advancing environmental, social and governance (ESG) best practices and promoting Diversity, Equity, and Inclusion in our portfolio companies. We are very pleased to be working with the diverse and dynamic team at PrimeBlock.
“They have built strong relationships with key partners, including the Tennessee Valley Authority, one of the largest major utilities in the U.S., with a commitment to net-zero carbon emissions by 2050, and with approximately 60% of its current production from non-carbon emitting sources today.”
Subject to regulatory approval, the approval of shareholders of both firms and other conditions, the deal is anticipated to close in the latter half of this year.