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As per the filing with the US Securities and Exchange Commission (SEC), Bitdeer is seeking four more three-month extensions for its SPAC merger.
On Wednesday, November 2, crypto miner Bitdeer submitted its filing to the US Securities and Exchange Commission (SEC) explaining that the deadline to undergo a SPAC merger and go public on Nasdaq could be extended by a year.
During the crypto market peak of November 2021, Bitdeer announced that it would be merging with a special purpose acquisition company (SPAC) Blue Safari Group Acquisition Corp. The filing states that the SPAC will hold a shareholder meeting to extend the deadline of the deal to December 14, 2023.
This year’s crypto market downturn has severely impacted Bitcoin miners’ business. Several Bitcoin miners have been selling their BTC holdings to cover the cost of operations. With Bitcoin hashrate and energy prices going high, the margins for Bitcoin miners have dropped significantly.
Amid these concerning times and tighter monetary conditions, the miners have to pay greater interest for the debt secured. These developments have been squeezing miner profits significantly.
Bitcoin miner Bitdeer has extended its deadline twice by three months each. To continue pushing it further, the SPAC has also been asking the shareholders for discretion. The filing shows that there could be four more three-month extensions in line.
Crypto miner Bitdeer offers cloud mining services. Meaning customers can rent the computing power from machines that Bitdeer owns and operates. Jihan Wu, a co-founder of mining rig manufacturer Bitmain, is also the co-founder of Bitdeer.
World’s Largest Bitcoin Miner Prepares for Bankruptcy
As per the latest development, the world’s largest Bitcoin miner Core Scientific (NASDAQ: CORZ) is seeking bankruptcy. The crypto miner has warned that it might run out of cash by the year and thus could seek bankruptcy protection.
To raise more funds from the market, Bitcoin mining companies like Core Scientific have been looking to dilute their equity. However, this is one of the least attractive ways of raising funds from the market. Earlier this year in July, the company entered into a $100 million common stock purchase agreement with B. Riley Principal Capital II.
Chase White, an analyst at Compass Point Research & Trading who also has a ‘buy’ rating on Core Scientific said:
“It’s no secret that the space has been struggling in general with the low Bitcoin prices. They are running out of options here with their ability to raise additional liquidity.”
Core Scientific said that it won’t be able to make payments due in late October and early November, owing to its equipment purchases and other financings. However, the company is exploring other alternatives such as raising additional capital, hiring strategic advisers, etc.