Cryptocurrency mining services company BitFuFu, backed by industry giant Bitmain, is slated to go public in the United States by merging with a special-purpose acquisition company in a deal that will value the company at $1.5 billion.
BitFuFu announced on Tuesday that it would enter a definitive business combination agreement with Nasdaq-listed Ariz Acquisition, which would include $70 million of fully committed private investment in public equity, or PIPE, financing led by bitcoin mining-rig maker Bitmain and a spinoff company, Antpool Technologies.
The Hong Kong-based company aims to provide a “one-stop hashrate solution provider for miners of all sizes,” according to a company press release, and offers cloud-mining, self-mining, and miner hosting—effectively allowing users to invest in crypto mining without having to operate the facilities.
“Entering this transaction now is the most optimal and strategic timing for enduring our rapid growth trajectory and increasing our global footprint in the crypto-mining industry,” says Leo Lu, founder and CEO of BitFuFu.
“This milestone of becoming a publicly-traded company through our merger with ARIZ will further drive improvements to our corporate governance, increase transparency, and attract new talent to help us achieve our vision of becoming the top digital asset mining company,” Lu says.
Lu founded BitFuFu in December 2020 after leaving Bitmain, where he worked for two years. He said that other key members of BitFuFu’s team were also former members of Bitmain and BitDeer, a spinoff controlled by billionaire crypto pioneer Jihan Wu.
In February 2021, BitFuFu partnered with Bitmain, becoming the company’s sole partner for cloud services, with the latter providing mining resources, such as machines and mining pools. BitFuFu entered into a 10-year mining hosting agreement with Bitmain globally, including the U.S.
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