According to a report released on Tuesday by Bloomberg, Genesis Digital Assets, a leading company in cryptocurrency mining, is in the process of collaborating with consultants on a potential initial public offering (IPO) in the United States.
Genesis Digital Assets prepares for IPO in the US
An unnamed source disclosed that Genesis Digital, widely recognized as a major player in Bitcoin mining, is preparing to initiate a substantial pre-IPO funding phase in the upcoming weeks. The company’s financial strength is evident, having secured over $550 million from investors since 2021 and achieving a valuation of over $5.5 billion in its most recent funding round.
Alameda Research, the defunct counterpart trading company of the now-defunct FTX exchange, invested approximately $1.15 billion in GDA in 2022, elevating the mining firm’s worth to $5.5 billion at that time.
Having originated from one of the earliest cryptocurrency mining operations, GDA has established a notable global presence with over 20 data centers across North America, Europe, Central Asia, and South America. The company boasts a combined power capacity exceeding 600 megawatts, positioning itself as one of the foremost cryptocurrency miners globally.
Despite encountering challenges during the 2022 cryptocurrency market decline, Genesis Digital Assets has made a recovery in line with the broader industry, supported by Bitcoin’s increasing value over the past year.
The prospect of the company going public through an IPO emerges as various cryptocurrency firms contemplate entering the public market in light of the sector’s resurgence.
Bitcoin mining firms adapting to market changes
The strategy proposed by GDA coincides with the efforts of numerous bitcoin mining companies to increase their earnings and mining capacities following the bitcoin halving in April. This event resulted in a 50% reduction in Bitcoin mining rewards. After the most recent bitcoin halving in April 2024, the block reward for Bitcoin decreased from 6.25 to 3.125 Bitcoins.
Despite this, BTC has not performed as expected, leading several Bitcoin mining firms to explore alternative revenue-boosting methods. With energy and technology costs remaining unchanged, if Bitcoin prices drop, mining could become more costly.
For example, the largest Bitcoin mining company globally has unveiled a new trial initiative that utilizes the recycled heat from Bitcoin mining to heat the homes of more than 11,000 residents in an entire town in Finland.
Bitcoin miners, including Genesis Digital Assets, are implementing various tactics to counterbalance the reduction in block subsidy. These strategies include transitioning to new sectors, investing in new technology, relocating, and accumulating more Bitcoins.
