The Texas-based bitcoin mining large is coming into a merger settlement with SilverSun Applied sciences, a publicly-traded enterprise expertise options supplier, as Rhodium is planning to listing on Nasdaq after an preliminary delay.
In the meantime, the autumn within the worth of BTC and the continued crypto winter has brought on bitcoin mining firms to wrestle to remain afloat.
Rhodium Makes One other Shot to go Public
In an announcement on Thursday (September 29, 2022), the merger between SilverSun and Rhodium noticed unanimous approval from the Board of Administrators of each firms.
A part of the phrases of the deal consists of every SilverSun shareholder will obtain a money dividend of a minimal of $1.50 per share, roughly equal to $8.5 million. The shareholders will even get one share of a inventory dividend in a newly created SilverSun subsidiary referred to as SWK Applied sciences.
Commenting on the newest improvement, Rhodium’s Chairman and CEO Chase Blackmon mentioned:
“We imagine this strategic transaction will unlock long-term accretive worth for Rhodium’s shareholders. We imagine entry to U.S. capital markets is paramount to sustainable, long-term success in our capital intensive trade.”
The CEO of SilverSun, Mark Meller, was additionally optimistic that the merger settlement would profit the corporate’s shareholders, prospects, and staff. Meller additional mentioned of the proposed deal:
“We additionally imagine that it supplies our stockholders with the chance to understand a considerable upfront money fee whereas persevering with to learn from the worth of our current companies and supplies them with the chance to take part within the potential upside of Rhodium at an thrilling time for the cryptocurrency market.”
The merger settlement is anticipated to be finalized by the top of 2022, topic to regulatory approvals, in addition to approval from each firms’ stockholders.
Rhodium, which develops proprietary software program and liquid cooling expertise to self-mine bitcoin, has been planning an preliminary public providing (IPO) since 2021. Nonetheless, the corporate postponed its IPO plans in January 2022, citing market circumstances.
Crypto Winter Affecting Bitcoin Mining Corporations
The continued cryptocurrency winter has seen bitcoin mining firms struggling to remain in operation. In July, BTC mining internet hosting service Compass Mining shed 15% of its workforce and likewise adopted cost-cutting measures in response to the bear market.
In September, one other mining firm Compute North filed for Chapter 11 chapter, stating that the agency owed a staggering $500 million to a minimum of 200 collectors.