Bitcoin miner Rhodium plans to go public, valued at $1.7 billion

Crypto industry’s first IPO in 2022 comes from Texas-based Bitcoin (bitcoin) mining company, Rhodium Enterprises.

at the SEC archive Last week, Rhodium planned to offer 7.69 million shares in an initial public offering (IPO) at a price of $12 to $14 apiece. 56.8 million Class A shares and 67.5 million Class B shares will be issued in the Nasdaq ticker symbol “RHDM,” valuing the company at nearly $1.7 billion.

Rhodium is a cryptocurrency technology company that mines Bitcoin using proprietary technology and liquid cooling technology. Their goal is to be the most sustainable and cost-effective Bitcoin producer in the industry.

The company joins a growing number of U.S. companies mining Bitcoin. For the past three years, marathons, BitDeer Technology, Riot Blockchain, Bit Digital are listed on stock exchanges such as Nasdaq.

According to the filing, Rhodium is currently operating 125 megawatts (MW) of mining capacity at its first site in Texas. 33,600 Bitcoin miners are running, generating a total hash rate capacity of about 2.7 EH/s.

Following the IPO and raising $100 million, it will operate a second site in Texas, where they “expect to develop 225 megawatts of additional capacity.” The company will effectively more than double its existing capacity by the end of 2022.

Keep in mind that the average cost per BTC in 2021 is around $47,000, with an astounding power base:

Our infrastructure platform allows us to mine Bitcoin at a much lower cost than the industry average. Between January 1, 2021 and September 30, 2021, our average electricity cost to produce one Bitcoin was approximately $2,507.

related: Mr. Wonderful plans to invest in mining company shares

Texas continues to earn its reputation as a Bitcoin mining friendly state.In the fourth quarter of 2021, Senator Ted Cruz commented that Texas should use bitcoin mining to capture wasted gas The Electric Reliability Commission of Texas (ERCOT) estimates that Texas By 2023, Bitcoin’s computing power demand could increase by a factor of 5.

Rhodium takes advantage of Texas’ “independent electricity market and abundance of low-cost renewable energy” and the business environment that supports Bitcoin.

Given the company’s experience in liquid cooling technology and efficiency; for Small bitcoin miners looking to solve valid blocks, It just got harder.