Leo Lu, Founder and CEO of Bitfufu.
Bifufu
BSingapore-based cryptocurrency mining platform itfufu is set to begin trading on the Nasdaq on Friday after entering into a long-delayed merger agreement with blank check company Arisz Acquisition Corp.
Bitfufu first attempted to go public in January 2022 through a merger with a fellow special purpose acquisition company formed by US advisory firm MSQ Ventures.The then 2022 agreement is valuable Bitfufu traded for $1.5 billion, but the deal was repeatedly postponed due to fluctuations in the cryptocurrency market.
However, over the past year, the market has bounced back strongly from the scandals that engulfed the crypto sector in 2022. The scandal saw high-profile players such as Sam Bankman-Freed and Chao Changpeng convicted of white-collar crimes, and sparked a chain of bankruptcies around the world. industry.
Bitcoin, the world's largest cryptocurrency, recently topped $61,000 and is close to its all-time high of nearly $69,000. Analysts say Bitcoin's rally is being driven by the approval of Bitcoin exchange-traded funds in the US and the upcoming “halving” event that will reduce the supply of new Bitcoin.
Upon completion of the merger on Thursday, Bithoof received $74 million in public equity from existing shareholder Bitmain, the Chinese mining rig giant co-founded by crypto pioneer Wu Jihan, and Bitmain affiliate Antpool. Received a private placement investment (PIPE). Bitfufu said it would use the proceeds to expand its cryptocurrency mining services.
“Our Nasdaq listing is an essential part of bringing much-needed credibility to the industry,” Bitfufu founder and CEO Leo Lu said in a written response. Ta. “Tapping into global capital markets will give us the resources to invest in sales, technology, green operations and supply chain integration, allowing us to provide better mining services.”
The name Bitfufu is a portmanteau of “Bitcoin” and the Chinese word for “wealth.” was founded in 2020 by former Bitmain business director Lu with initial investment from his former employer. Bitfufu offers cloud mining services, allowing customers to mine Bitcoin on its platform without purchasing expensive mining equipment. The startup also mines Bitcoin itself. Other services include the sale, rental, and housing of Bitcoin mining machines.
Bitfufu announced first-half 2023 revenue of $7.8 million, an 18% year-over-year increase. Additionally, the company's first-half revenue increased 64% year over year to $134 million, with cloud mining services accounting for more than half of the revenue. According to the financial report, Bitfufu's largest customer was ChainUp, a Singapore-based blockchain technology software service provider backed by Singaporean real estate billionaire Kwee Liong Tek.
The Bitfufu and Arisz merger is one of the few SPAC deals that the cryptocurrency industry has managed to cross the finish line in recent years. Another successful merger was that of Wu-controlled crypto peer BitDeer, which started trading on the Nasdaq last April but whose stock price has since fallen nearly 40%.
Cryptocurrency companies forced to withdraw from public listings include crypto exchange Brish, backed by billionaires Peter Thiel and Richard Lee, and stablecoin issuer Circle Internet Financial. . The two companies were aiming for a $9 billion SPAC merger, which was ultimately called off at the end of 2022.
