Bitcoin miner PrimeBlock to go public via $1.25 bln SPAC deal

African Agriculture Holdings

01/04/2022 13:39

April 1 (Reuters) - Prime Blockchain Inc, a bitcoin mining
and infrastructure startup, on Friday agreed to go public in the
United States by merging with a blank-check firm in a deal that
would value the combined company at $1.25 billion including
debt.
    The company, which does business as PrimeBlock and operates
data centers and crypto mining operations across North America,
has secured $300 million in equity financing for the deal from
an affiliate of Cantor Fitzgerald & Co.
    The merger with 10X Capital Venture Acquisition Corp II
 VCXA.O  is expected to close by the second half of this year,
after which the combined company will be listed on the Nasdaq
and led by PrimeBlock Chief Executive Officer Gaurav Budhrani.
    PrimeBlock's decision to go public comes at a time when
mergers with blank-check firms, or special purpose acquisition
companies (SPAC), have slowed due to a regulatory crackdown
sparked by concerns that investors were getting a raw deal. 
    The U.S. Securities and Exchange Commission recently
unveiled a new draft rule that would require SPACs to disclose
more details about their sponsors, their compensation, conflicts
of interest and share dilution in an effort to curb such
companies from issuing overly optimistic earnings projections.
 urn:newsml:reuters.com:*:nL2N2VX2J6
    

 (Reporting by Sohini Podder in Bengaluru; Editing by Aditya
Soni)
 ((Sohini.Podder@thomsonreuters.com;))