A leading cloud-mining service provider announced a SPAC deal Tuesday to go public.
The SPAC Deal: Digital asset mining service and cloud-mining service provider Finfront Holding Company announced a SPAC deal with Arisz Acquisition Corp (NASDAQ:ARIZ).
The merger values the company at a pro forma enterprise value of $1.5 billion.
A $70 million PIPE includes backing from key investor Bitmain.
Finfront Holding will be renamed to BitFuFu Inc and trade as the ticker FUFU on the Nasdaq. The merger is expected to close in the third quarter of 2022.
About BitFuFu: BitFuFu offers mining solutions for mining customers that include institutional customers and individual miners. The company offers cloud-mining services that allow its users the ability to view and manage their rigs in real-time.
"Its proprietary Aladdin system handles ultra-large scale hashrate management dispatching," according to the press release.
BitFuFu was founded in 2020 and has a relationship and investment with Bitmain. The company is the only cloud-mining strategic partner of Bitmain. A ten-year mining hosting agreement with Bitmain and BitFuFu is among the items mentioned in the deal announcement.
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Growth Ahead: BitFuFu had hosting capacity of 140 MW at the end of 2021. The company had a hashrate of 3.0 EH/s at the end of 2021, with 100% of the total from third parties.
BitFuFu is guiding for its hashrate to hit 10.0 EH/s by the end of 2022, split as 4.5 EH/s self-owned and the rest from third parties.
The company is guiding for 2021 revenue to hit $100 million and 2022 revenue to reach $330 million.
Price Action: ARIZ shares are up 0.62% to $9.80 in early trading Tuesday.