Summary
- Bitcoin miner Genesis Digital Assets is planning an IPO in the US.
- SBF’s former Alameda invested over $1 billion in the firm.
According to the latest reports from Bloomberg, Genesis Digital Assets considers an initial public offering in the US, amidst the crypto industry’s resurgence.
The crypto mining company which previously had Sam Bankman Fried’s former hedge fund Alameda as an investor is reportedly working with advisers on the potential listing, people familiar with the matter said.
According to the same reports, the company also plans to raise a pre-IPO funding round that will launch sometime in the coming weeks. Sources claim that deliberations are ongoing and details of the fundraising plans could still change.
Genesis Digital Assets Raised Over $550M in 2024
Genesis Digital Assets is one of the earliest Bitcoin and crypto mining companies. It received more than $1 billion worth of investment from the venture arm of Alameda Research which was controlled by SBF before FTX collapsed.
GDA reportedly has a total power capacity of more than 500 megawatts with 20 data centers across North America, South America, Europe, and Central Asia, and it’s currently among the world’s top crypto miners.
According to Bloomberg, the company’s predecessor opened its first facility in Iceland back in 2014 and had large-scale mining operations in China before the local government imposed the ban on the crypto industry back in 2021.
In 2024, GDA raised over $550 million and embarked on a rapid expansion in the US. The crypto mining company was valued at $5.5 billion in a fund-raising round back in April 2022, as per an internal spreadsheet listing FTX and Alameda’s venture portfolio.
In the same year, the crypto-mining sector imploded as FTX and Alameda filed for Chapter 11 bankruptcy and digital assets dropped in prices.
However, the mining industry has seen a sharp rebound triggered by Bitcoin’s rising prices over the past year.
On the other hand, during the past few months, the crypto market has witnessed a rare Bitcoin miner capitulation event after the halving event.
Bitcoin Miners Might Have to Sell More BTC
A new report from Kaiko Research mentioned by Bloomberg reveals that Bitcoin mining companies might have to sell more BTC due to a decrease in fees’ prices.
Official data shows that fees have decreased to an average price of $3-$5, down from around $45 in January. Back in April, the halving event slashed miner rewards from 6.25 BTC to 3.125 BTC.
But, it’s important to highlight the fact that even if Bitcoin miners’ reserves dropped, their fiat value surged due to the rise of BTC’s price.
IntoTheBlock’s head of research, Lucas Outmuro, said recently that miners are expected to hold less Bitcoin over time post the halving event. But even if they hold fewer coins, they are now more valuable.