Aura FAT SPAC Pulls $115m in IPO, Planning to Merge Crypto Firm

Cayman Islands incorporated Special Purpose Acquisition Company (SPAC) Aura FAT Projects Acquisition Corp has announced its successful Initial Public Offering (IPO) on the Nasdaq Exchange where it raised $115 million. 


As announced by the company, the public offering featured as many as 10,000,000 units given at $10.00 per unit. The IPO also saw the firm give out its Class A ordinary share and one redeemable warrant entitling the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share. 

As a SPAC, Aura Fat is entitled to raise funds via this method, after which it can then complete a merger with any company within its line of focus.  Aura Fat said its approach to merge “will not be limited to a particular industry or geographic region, the company intends to focus its search on new emerging technology companies with an acute growth potential in Southeast Asia and Australasia in sectors such as the Web 3.0, blockchain, cryptocurrency, digital ledger, e-gaming, and other new financial technology and services sectors.”

A Growing Trend in the Blockchain Ecosystem

While SPAC mergers are not so common in the digital currency ecosystem nowadays as it is popular amongst Wall Street startups, a number of crypto-linked platforms have gone public through this means. One of the most prominent examples is the public debut of the Bakkt digital asset platform through a merger with VPC Impact Acquisition last year.

Additionally, startups like Core Scientific and Griid crypto mining firms have also gone public through mergers with different SPAC in July and December 2021 respectively.

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Argo Blockchain Inks Bitcoin Mining Machine Swap Agreement with Core Scientific

The London-listed Bitcoin mining company Argo Blockchain has inked a partnership with Core Scientific that will see both companies swap their BTC mining machines over the next few months. - 2022-03-15T153308.424.jpg

According to the announcement from the two outfits, the Argo’s Bitmain Antminer S19 series bitcoin mining fleet hosted at Core will be swapped for S19J Pro bitcoin miners previously ordered by Core to be delivered directly to Argo’s new Helios facility in Texas State. Per the details shared, this fleet swap will represent “approximately 60% of Argo’s total mining capacity and will reduce operational expenses for Argo as part of its ongoing transition to operating its own mining facilities.”

The proposed S19J Pro Bitcoin miners on track to be delivered to Argo Blockchain has the capacity for 967 PH/s with the miners capable of delivering a maximum hash rate of 110 TH/s. Based on these specifications, it implies that as many as 9,000 miners are on track to be delivered to Argo Blockchain.

On the other hand, the miners on track to become Core Scientific’s fleet has the capacity for 958 petahashes per second (PH/s), capable of delivering a total of 95 terahashes per second (TH/s), a specification that will amount to a total of 10,000 units of the S19 series. 

“The agreement with Core marks the final step towards our strategic objective of owning and operating all our miners, a path which we chose to pursue in 2020,” said Peter Wall, Chief Executive Officer of Argo. “While we have been pleased with the performance of our miners hosted with Core, this agreement allows us to upgrade our existing fleet and strengthen our mining infrastructure, while greatly reducing the operational risk of relocating between facilities. Finally, we greatly appreciate the hosting services provided by Core Scientific, as well as their flexibility in supporting our strategy shift.”

It is not uncommon to find mainstream crypto mining startups paying third-party hosting service providers to manage their fleet and mine their assets. In a bid to be free from these obligations, Argo Blockchain had been building out the data center in Texas, drawing on support through a short-term loan of $20 million it secured from Galaxy Digital back in June last year.

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Carbon Neutral Hosting Provider To List On Nasdaq Through Merger

Carbon neutral hosting provider Core Scientific announced it will be listing on the Nasdaq soon through a merger agreement with XPDI.

Core Scientific, a carbon-neutral provider of bitcoin mining hosting and infrastructure, announced it has entered a merger agreement with publicly traded acquisition company Power & Digital Infrastructure Acquisition Corp (XPDI).

“We are very pleased to support Core Scientific’s transition to the public markets and believe that [Core Scientific’s] vertical integration will provide a competitive advantage in the industry,” said Ted Brombach, chairman of XPDI, in the announcement.

The merger transaction values the combined company, expected to operate as Core Scientific and remain publicly listed on the Nasdaq, at an implied pro forma fully diluted enterprise value of approximately $4.3 billion. Additionally, it is expected to generate around $300 million in net cash proceeds at closing.

The hosting and infrastructure provider shared that it expects to reinvest the transaction’s proceeds into mining equipment and infrastructure as it seeks to expand its operations. But although both companies’ executives have approved the merger, it is still subject to regulatory approval and the consent by some of the companies’ stockholders.

The transaction is expected to be completed in the fourth quarter of 2021, but some details still lack. The two companies are yet to file a Form 8-K with the Securities and Exchange Commission (SEC), but XPDI said it plans to submit it today.

Core Scientific is a carbon-neutral provider of high-performance infrastructure to power bitcoin mining companies. It is also set to start venturing into self-mining soon through a pending acquisition of bitcoin mining company Blockcap.

XPDI is a “blank check” company sponsored by XPDI Sponsor and led by Energy & Power Transition Partners and XMS XPDI Sponsor Holdings. It specializes in mergers, asset acquisitions, reorganization, or similar corporate combinations.

Core Scientific is being advised by Evercore and Cooley LLP on financial and legal matters, respectively. And XPDI is being advised on financial, capital, and legal affairs by Barclays Capital, XMS Capital Partners, and Kirkland & Ellis LLP.


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US Bitcoin mining giant Core Scientific set for Nasdaq listing via $4.3B SPAC deal

Core Scientific, one of the largest Bitcoin (BTC) mining operations in North America is set for a public listing on Nasdaq.

According to CNBC on Wednesday, Core has inked a $4.3 billion merger with Power & Digital Infrastructure Acquisition Corp — a special purpose acquisition company (SPAC). Apart from the planned valuation, other listing details like trading ticker and the start of actual public trading are yet to be revealed as of the time of writing.

The SPAC merger and subsequent Nasdaq listing will see Core join the ranks of fellow publicly-traded Bitcoin mining companies in the United States like Riot Blockchain and Marathon Digital.

Core CEO Mike Levitt revealed in an interview that the company had mined over 3,000 BTC since the start of 2021 with the firm holding 1,683 Bitcoin, currently valued at $53 million as of the time of writing.

The company reportedly earned $60 million in revenue for 2020 and is projecting an eight-fold increase in 2021. Indeed, North American miners are banking on the crypto mining disruptions in China to increase their earnings in 2021.

Levitt also described the company’s mining infrastructure framework as “unparalleled,” stating that Core holds over 70 patents in blockchain-related patents.

Operating out of locations in the Midwest and Southern United States, Core’s possible $4.3 billion valuation will put the firm at double the market capitalization of other rivals like Marathon, and Riot Blockchain.

Related: Four North American Bitcoin miners that could benefit from the East-West shift

With Bitcoin mining stocks continuing to remain a useful way to gain indirect BTC exposure for some institutional investors, several miners are electing to go public. This trend has also contributed to an increase in crypto-related SPAC deals and direct listings.

Back in March, Bitfury’s U.S. Bitcoin miner subsidiary Cipher Mining announced a $2 billion SPAC merger with Nasdaq-listed Good Works Acquisition Corp. As previously reported by Cointelegraph, Aussie Bitcoin miner Iris Energy is also looking to raise $200 million ahead of a planned Nasdaq listing.