In all of this, the strategic timing of Genesis’ plans has come up as noteworthy.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
Genesis Digital Assets (GDA), a major Bitcoin mining firm, is currently weighing its options regarding a potential initial public offering (IPO) in the United States. This development was detailed in a July 3 Bloomberg report and represents a wider trend among Bitcoin miners seeking to expand their operations following the April 2024 halving event, which cut Bitcoin mining rewards in half.
According to sources with inside knowledge on the matter, GDA has met with advisors, and work is already ongoing as preparations for the potential IPO take full gear. Aside from this, the company also plans to launch a pre-IPO funding round soon. Sources say this will enable it to raise enough capital before going public.
In all of this, the strategic timing of Genesis’ plans has come up as noteworthy. It comes at a time when it has become a necessity for Bitcoin miners to expand their revenues and mining capacities. That is if they intend to stay profitable.
In view of this, GDA’s plans could not have come at a better time and the IPO, which potentially gives it access to raise a lot of money, is a major step towards growth and expansion.
It might be worth mentioning that GDA received a notable investment of $1.15 billion from Alameda Research in 2022. Alameda Research was the sister trading firm of the now-bankrupt FTX exchange, raising questions about potential risks associated with this past investment.
As of publication, GDA has yet to issue an official statement regarding the IPO or the Alameda connection.
Despite this past association, however, GDA boasts a strong operational footprint. Information on its website reveals that the mining firm currently runs over 20 mining facilities across four continents. That includes its facilities in Texas, North Carolina, and South Carolina within the US. Its total power capacity at the moment also exceeds 500 megawatts.
Further demonstrating the geographically diverse inclination that the firm has, GDA recently expanded into Argentina. It launched a new mining centre in the South American region in May. This was after announcing another facility in Texas a month earlier.
As earlier stated, GDA’s potential IPO is a trend that’s growing relatively rampant among Bitcoin mining companies seeking public markets to raise capital and expand operations. However, it also signals the growing confidence of the mining industry and its desire to tap into traditional financial markets.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
