Bitcoin Miner Genesis Digital Assets Eyes US IPO despite Alameda Ties

UTC by Mayowa Adebajo · 2 min read
Bitcoin Miner Genesis Digital Assets Eyes US IPO despite Alameda Ties
Photo: Genesis Digital Assets

In all of this, the strategic timing of Genesis’ plans has come up as noteworthy.

Genesis Digital Assets (GDA), a major Bitcoin mining firm, is currently weighing its options regarding a potential initial public offering (IPO) in the United States. This development was detailed in a July 3 Bloomberg report and represents a wider trend among Bitcoin miners seeking to expand their operations following the April 2024 halving event, which cut Bitcoin mining rewards in half.

GDA Consults for IPO

According to sources with inside knowledge on the matter, GDA has met with advisors, and work is already ongoing as preparations for the potential IPO take full gear. Aside from this, the company also plans to launch a pre-IPO funding round soon. Sources say this will enable it to raise enough capital before going public.

In all of this, the strategic timing of Genesis’ plans has come up as noteworthy. It comes at a time when it has become a necessity for Bitcoin miners to expand their revenues and mining capacities. That is if they intend to stay profitable.

In view of this, GDA’s plans could not have come at a better time and the IPO, which potentially gives it access to raise a lot of money, is a major step towards growth and expansion.

Alameda Investment and Company Background

It might be worth mentioning that GDA received a notable investment of $1.15 billion from Alameda Research in 2022. Alameda Research was the sister trading firm of the now-bankrupt FTX exchange, raising questions about potential risks associated with this past investment.

As of publication, GDA has yet to issue an official statement regarding the IPO or the Alameda connection.

Despite this past association, however, GDA boasts a strong operational footprint. Information on its website reveals that the mining firm currently runs over 20 mining facilities across four continents. That includes its facilities in Texas, North Carolina, and South Carolina within the US. Its total power capacity at the moment also exceeds 500 megawatts.

Further demonstrating the geographically diverse inclination that the firm has, GDA recently expanded into Argentina. It launched a new mining centre in the South American region in May. This was after announcing another facility in Texas a month earlier.

As earlier stated, GDA’s potential IPO is a trend that’s growing relatively rampant among Bitcoin mining companies seeking public markets to raise capital and expand operations. However, it also signals the growing confidence of the mining industry and its desire to tap into traditional financial markets.

Business News, IPO News, News
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