Core Scientific, a large US bitcoin mining company, will go public through SPAC

Cryptocurrency mining operator Core Scientific will list on the Nasdaq through a merger with special purpose company Power & Digital Infrastructure Acquisition Corp.

Cryptocurrency mining operator Core Scientific said Wednesday it will list on the Nasdaq through a merger with Power & Digital Infrastructure Acquisition Corp. The deal values ​​Core Scientific at about $4.3 billion. Core, which has operations in North Dakota, North Carolina, Georgia and Kentucky, is one of North America's largest providers of blockchain infrastructure and hosting services. It was not immediately clear when trading would begin. The stock name was not announced.

Its competitors Riot Blockchain and Marathon Digital have market capitalizations of $2.18 billion and $2.25 billion, respectively.

Core, which primarily mines bitcoin, said it generated $60 million in revenue in 2020 and expects to reach $493 million this year. The company declined to disclose net income or losses.

Co-chairman and CEO Mike Levitt said in an interview that Core has mined more than 3,000 bitcoins so far in 2021. During the same period, Marathon Digital has produced 846 bitcoins and Riot has produced 1,167.

Core is increasing energy capacity at its existing sites and is looking to build more mines in possibly one or two states. It operates about 80,000 rigs and will have well over 300,000 total mining rigs by the end of 2022, according to Levitt.

Levitt, who invested in data centers during the private equity era in the 1990s, said Core's business model is much more than just a bitcoin mine, with a bunch of computers running 24 hours a day, and can be expanded to any data-related business.

Core developed an artificial intelligence program that optimizes the mining of various Bitcoin derivatives to maximize returns at critical moments. Core plans to return $300 million of net cash proceeds to the company to fund its growth.

Critics say cryptocurrency has a negative impact on the environment because of its heavy use of energy. This is something Core has prioritized since its launch. The company operates a 100% net carbon neutral business, with 56% of its electricity coming from sustainable sources, including solar, wind, hydro and nuclear. The company buys carbon credits to offset the rest.