Crypto miner Bitdeer Technologies Holding Co. started trading on the Nasdaq Friday after a long-delayed SPAC deal finally closed, allowing shares of the Singapore-based company to be traded in the US.
(Bloomberg) — Crypto miner Bitdeer Technologies Holding Co. started trading on the Nasdaq Friday after a long-delayed SPAC deal finally closed, allowing shares of the Singapore-based company to be traded in the US.
Bitdeer — owned by Chinese billionaire Jihan Wu — first agreed to merge with Blue Safari Group Acquisition Corp., a special purpose acquisition company, in November 2021. But the transaction was delayed multiple times amid turmoil in the crypto market.
The stock traded at $8.22 per share at 9:33 a.m. in New York, an 18% decline from the $10 per share Blue Safari closed at on Thursday.
The deal was originally estimated to be worth $4 billion at the time of its announcement, when Bitcoin was trading near an all-time high of nearly $70,000. But after a few extensions, the stock is making its debut in a changed market, where both SPACs and crypto-related stocks aren’t nearly as popular.Â
Across the industry, SPAC redemptions are running at a rate of more than 90% this year. And roughly 70% of Blue Safari shares were redeemed in December when investors approved an extension to get the deal done. Meanwhile, Bitcoin is trading around $30,000 after recovering from a series of blowups that pushed the value of the token to less than $16,000 in November — bringing down the value of crypto mining stocks along with it.Â
Bitdeer operates six global mining data centers — including one of the largest centers in Texas — with an aggregate electricity capacity of 775-megawatts, according to a recent statement. It is one of the top crypto miners by computer power and is backed by crypto entrepreneur Wu, co-founder of Bitmain Technologies Ltd., one of the largest manufacturers of Bitcoin mining equipment.
Still, the company is faced with the same issues plaguing the rest of the mining industry. That includes soaring electricity costs and increased competition. In a dire sign of the industry’s health, Core Scientific Inc., the largest public Bitcoin miner by computing power, declared bankruptcy last year.Â
However, the recent rebound in Bitcoin prices has given some breathing room for debt-ridden miners, as well as opportunities to raise capital in the stock market. Mining shares typically move in tandem with Bitcoin, which is rallying. So far this year it’s up 80%.
–With assistance from Bailey Lipschultz.
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