It’s official: Bitcoin mining company Rhodium Enterprises will launch its initial public offering (IPO) on the Nasdaq.
The IPO of Rhodium Enterprises
The Texas-based company filed an official application with the SEC, saying it expects to gross about $88.8 million net, assuming an initial price of $13 per share.
A portion of the proceeds will be turned over to Rhodium Holdings, with which the company will repay some outstanding debt, including interest, but also to build new sites and for general corporate purposes, such as buying new mining machines.
Should the proceeds be greater, any excess proceeds will be used by Rhodium Holdings for new site construction and general corporate purposes.
This will be the first IPO in 2022 for the crypto sector. There are already other US mining companies listed on the stock exchange: Marathon, Bitdeer Technologies, Riot Blockchain and Bit Digital are listed on stock exchanges like the NASDAQ.
At a price of $13 per share, the company’s total valuation is $1.7 billion. After listing on the Nasdaq the shares will be traded under the ticker “RHDM”.
Rhodium’s Sustainable Bitcoin Mining
Rhodium uses proprietary liquid-cooled technology to mine Bitcoin, aiming to be the most sustainable and cost-efficient miner.
The company now has 125 megawatts (MW) of harvestable electrical power for Bitcoin mining at its first site in Texas, where they use as many as 33,600 ASICs with a total computing power of about 2.7 Ehash/s. This is more than 1% of the world’s entire hashrate.
Thanks to the funds raised by the IPO, as well as a $100 million capital increase, they would like to open a second site in Texas with 225 MW of additional capacity by the end of 2022.
The company claims to have significantly lower electricity costs than the industry average, given that between January and September 2021 the average cost of electricity to mine 1 BTC was only $2,500. Over the same period, the value of 1 BTC was virtually always over $30,000, peaking at almost $65,000.
Texas is therefore an ideal location for Bitcoin mining, so much so that Senator Ted Cruz has called for the state to use the natural gas that would normally be wasted to produce electricity to mine BTC.
The Electric Reliability Council of Texas (ERCOT) predicts that energy demand in Texas for Bitcoin mining could increase fivefold by 2023.