- The firms planning to go public face a drop in cryptocurrency values.
- The decline in cryptocurrency prices might impact firms like Core Scientific.
Bitcoin’s recent dip in value and the wider crypto market are expected to have a negative impact on crypto miners who are scheduled to go public shortly.
The decline in cryptocurrency prices might impact firms like Core Scientific, which intends to combine with a special purpose acquisition company (SPAC) and bitcoin miner Rhodium Enterprises, which is contemplating an IPO of over $2 billion. After hitting an all-time high in November, Bitcoin values have declined more than 30 percent and investors, and the number of miners going public has slowed.
Founder and COO of Luxor Mining, Ethan Vera, said:
“There are a number of SPACs and IPOs that will look to close in the first half of 2022, such as Core Scientific, PrimeBlock, Rhodium and Griid.”
Increasingly Competitive Market
According to him, the firms planning to go public face a drop in cryptocurrency values and an oversupply of investors interested in these companies. Neither Stronghold Digital nor Iris Energy’s stock price has risen by more than half since their Nasdaq debuts in October and November, respectively.
The shares of TeraWulf, the bitcoin miner backed by Gwyneth Paltrow and a SPAC play, have been trading sideways since their launch in December, according to TradingView data.
This year is likely to see a spike in competitiveness as the network’s hashrate continues to climb, and investors will be keeping a watch on the valuations of miners and their expansion plans. The most successful companies will be those who can stand out in an increasingly competitive market.
