Bitcoin mining company PrimeBlock goes public via a $1.25 billion SPAC merger

On Friday, Bitcoin (BTC) mining company PrimeBlock announced that it will merge with special purpose acquisition vehicle (SPAC) company 10X Capital Venture Acquisition Corp II. The transaction brings PrimeBlock’s enterprise value to $1.323 billion and is expected to close in the second half of the year.

The company has installed 1.8 exahash per second of BTC self-mining equipment, which accounts for about 0.89% of the total hash rate of the Bitcoin network. According to PrimeBlock, the break-even price for mining is $9,000 per coin. In 2020, up to 59% of its energy sources were carbon-free. The company aims to become carbon neutral on a net-zero basis by 2050.

Last year, PrimeBlock generated $21.8 million in revenue by mining 356.8 BTC. But in 2022, the company expects revenue of $220.1 million, or a projected 3,629 BTC, in part by rapidly expanding its mining capacity to over 10 exahash per second. It also has a small Ethereum (ETH) mining operation extracting 699 such digital assets in 2021.

Regarding the business agreement, Hans Thomas, Chairman and CEO of 10X Capital commented:

“Gaurav and the leadership team […] successfully deployed over 110 megawatts of data center capacity and generated revenue of more than $24 million in the fourth quarter. They have built strong relationships with key partners […] with a commitment to net-zero carbon emissions by 2050.”