On Friday, Bitcoin (BTC) mining company PrimeBlock announced that it is merging with special purpose acquisition (SPAC) vehicle company 10X Capital Venture Acquisition Corp II. The deal places PrimeBlock at an enterprise value of $1.323 billion and is expected to close in the second half of the year.
The company has installed 1.8 exahash per second from the self-mining company BTC, which represents approximately 0.89% of the overall hash rate of the Bitcoin network.. According to PrimeBlock, their breakeven price for mining is $9,000 per coin. In 2020, up to 59% of its energy sources were carbon free. The company seeks 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 to generate $220.1 million in revenue, or a forecast 3,629 BTC, in part through rapidly expanding its mining capabilities to more than 10 exhash per second. It also has a small Ethereum (ETH) mining operation, mining 699 of said digital assets in 2021.
Regarding the business deal, Hans Thomas, Chairman and CEO of 10X Capital, commented:
“Gaurav and the leadership team […] successfully deployed more than 110 megawatts of data center capacity and generated more than $24 million in revenue in the fourth quarter. They have built strong relationships with key partners […] with a commitment to zero net carbon emissions by 2050.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.