Bitcoin Mining Company Rhodium Looking to Go Public Via SilverSun Merger
The Texas-based bitcoin mining giant is entering a merger agreement with SilverSun Technologies, a publicly-traded business technology solutions provider, as Rhodium is planning to list on Nasdaq after an initial delay.
Meanwhile, the fall in the price of BTC and the ongoing crypto winter has caused bitcoin mining companies to struggle to stay afloat.
Rhodium Makes Another Shot to go Public
In an announcement on Thursday (September 29, 2022), the merger between SilverSun and Rhodium saw unanimous approval from the Board of Directors of both companies.
Part of the terms of the deal includes each SilverSun shareholder will receive a cash dividend of a minimum of $1.50 per share, approximately equal to $8.5 million. The shareholders will also get one share of a stock dividend in a newly created SilverSun subsidiary called SWK Technologies.
Commenting on the latest development, Rhodium’s Chairman and CEO Chase Blackmon said:
“We believe this strategic transaction will unlock long-term accretive value for Rhodium’s shareholders. We believe access to U.S. capital markets is paramount to sustainable, long-term success in our capital intensive industry.”
The CEO of SilverSun, Mark Meller, was also optimistic that the merger agreement would benefit the company’s shareholders, customers, and employees. Meller further said of the proposed deal:
“We also believe that it provides our stockholders with the opportunity to realize a substantial upfront cash payment while continuing to benefit from the value of our existing businesses and provides them with the opportunity to participate in the potential upside of Rhodium at an exciting time for the cryptocurrency market.”
The merger agreement is expected to be finalized by the end of 2022, subject to regulatory approvals, as well as approval from both companies’ stockholders.
Rhodium, which develops proprietary software and liquid cooling technology to self-mine bitcoin, has been planning an initial public offering (IPO) since 2021. However, the company postponed its IPO plans in January 2022, citing market conditions.
Crypto Winter Affecting Bitcoin Mining Companies
The ongoing cryptocurrency winter has seen bitcoin mining companies struggling to stay in operation. In July, BTC mining hosting service Compass Mining shed 15% of its workforce and also adopted cost-cutting measures in response to the bear market.
In September, another mining company Compute North filed for Chapter 11 bankruptcy, stating that the firm owed a staggering $500 million to no less than 200 creditors.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.