Crypto Mining Firm Primeblock To List via SPAC Merger in $1.25 Billion Deal

Nicholas Otieno   Apr 04, 2022 02:40 2 Min Read

PrimeBlock, a Bitcoin mining firm based in the U.S., announced last Friday that it plans to go public through a merger with a special purpose acquisition company (SPAC), 10X Capital Venture Acquisition Corp. II (VCXA) company.

Last Friday, 10X Capital and PrimeBlock disclosed that they have secured $300 million in equity financing for the deal from C.F. Principal Investments LLC, an affiliate of Cantor Fitzgerald & Co.

The merger deal is set to give a combined company a valuation of $1.25 billion as well as debt and greater capital on its balance sheet to drive business expansion, sustained growth, and new digital offerings, the PrimeBlock stated.

PrimeBlock will list on the Nasdaq stock exchange by merging with 10X Capital Venture Acquisition Corp. II.

Gaurav Budhrani, PrimeBlock Chief Executive Officer, will be the CEO of the combined company. Budhrani talked about the development and 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.”

PrimeBlock’s decision to go public occurs at a time when mergers with SPACs or blank-check firms have slowed down because of a regulatory crackdown launched by the U.S. SEC over concerns that investors are getting raw deals.

The SEC recently launched a new draft rule that would require SPACs to disclose more details about their compensation, sponsors, share dilution, and conflicts of interest as part of efforts to curb such firms from giving excessively optimistic earnings projections.

Mining for Growth

In November last year, PrimeBlock hired Gaurav Budhrani, former Goldman Sachs VP spearheading the crypto investment banking coverage, as its CEO. During that time, the mining firm also hired Alan Konevsky, the CEO and Chief Legal Officer at tZERO Group and former Managing Director at Goldman Sachs, as its Chief Legal Officer (CLO).

PrimeBlock made the appointments as part of its commitments to solidify mining operations and infrastructure business in North America.

With its mining operations spread across the U.S. (in North Carolina, Tennessee, Pennsylvania) and Canada, PrimeBlock remains dedicated to growing its mining operations across North America and beyond.

The firm expects to increase investment in captive renewable power, latest-generation mining hardware, modular data centre technology, and latest-generation mining hardware to provide increased infrastructure support for its rising Bitcoin mining activities. 

Image source: Shuttetstock

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