Alameda-backed bitcoin miner Genesis Digital Assets (GDA) is reportedly weighing options for a potential initial public offering (IPO) in the United States. According to Bloomberg, the firm is consulting with advisers on the IPO plan and intends to launch a pre-IPO funding round in the coming weeks.
Alameda’s Significant Investment in GDA
The defunct trading firm Alameda Research, which was the sister company of the bankrupt FTX exchange, invested approximately $1.15 billion in GDA in 2022. This investment valued the mining firm at $5.5 billion at the time.
Expanding Revenues and Mining Capacities
The potential IPO move comes as many bitcoin mining firms are attempting to expand their revenues and mining capacities following the bitcoin halving in April, which reduced bitcoin mining rewards by 50%.
GDA’s Global Presence and Recent Expansion
GDA, which has a total power capacity of over 500 megawatts, operates more than 20 mining facilities across four continents, including in Texas, North Carolina, South Carolina, and Argentina. In May, the company launched a new mining center in Argentina, and in April, it announced a new facility in Texas with a total power capacity of around 36 MW.
“GDA did not immediately respond to The Block’s request for comment.”
Conclusion
The bitcoin mining industry has been facing various challenges, including the recent bitcoin halving and market conditions. The potential IPO by Alameda-backed GDA suggests that the firm is positioning itself to capitalize on the evolving landscape and explore new opportunities for growth and expansion.
