Bitcoin miner Rhodium set for IPO, valued at $1.7 billion

The first IPO in the crypto industry in 2022 comes from Rhodium Enterprises, a Texas-based Bitcoin (BTC) miner.

In a Securities and Exchange Commission filing last week, Rhodium will offer 7.69 million shares in an initial public offering (IPO) for between $12 and $14, respectively. Trading under the Nasdaq “RHDM” index will release 56.8 million Class A shares and 67.5 million Class B shares, ultimately valuing the company at a small $1.7 billion.

Rhodium is a cryptocurrency technology company that uses its own technology and liquid cooling technology to mine Bitcoin on its own. Their goal is to become the most sustainable and cost-effective producer of Bitcoin in the industry.

The company is on the ever-growing list of US-based companies that mine bitcoin. Over the past three years, Marathon, Bitdeer Technologies, Riot Blockchain and BitDigital have been listed on exchanges such as NASDAQ.

According to Filing, Rhodium is currently operating a mining capacity of 125 megawatts at its first site in Texas. 33,600 Bitcoin miners are in operation, resulting in a total hash rate capacity of approximately 2.7 EH/s.

After its initial public offering and $100 million in financing, the company operates a second site in Texas, “expecting to develop an additional 225 megawatts of capacity.” By the end of 2022, the company will actually more than double its current production capacity.

Considering that the average cost of BTC in 2021 was around $47,000, their electricity cost base is staggering.

Our infrastructure platform enables bitcoin mining at a much lower cost compared to the industry average. From January 1, 2021 to September 30, 2021, the average electricity cost to produce one bitcoin was about $2,507.

Related: Great plans to invest in mining company shares

Texas continues to solidify its reputation as a suitable country for bitcoin mining. In the fourth quarter of 2021, Senator Ted Cruz predicted that the Texas Electricity Reliability Council (ERCOT) would fivefold electricity demand through bitcoin mining by 2023. He commented that he needs to use coin mining to recover lost natural gas.

Rhodium is taking advantage of the “Texas Autonomous Electricity Market and Abundant Low-Cost Renewable Energy Resources” and a business environment that favors Bitcoin.

Given the company’s experience with liquid cooling technology and its efficiency, it has become a bit more challenging for small Bitcoin miners trying to solve a valid block.

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