The Bitcoin mining company BitFuFu is considering going public in the United States through a merger with a special purpose acquisition company (SPAC). This move suggests there is a growing demand for Bitcoin mining operations. The company previously filed a Form F-4 with the Securities and Exchange Commission which was approved recently, increasing the likelihood of BitFuFu completing an initial public offering.
BitFuFu’s SPAC deal and IPO indicate mainstream acceptance and interest are building for Bitcoin and cryptocurrency companies. The upcoming performance of major publicly traded crypto firms further underscores this emerging trend of the market becoming more curious about businesses involved in digital assets. BitFuFu will trade under the ticker symbol FUFU on the Nasdaq exchange after completing the SPAC merger, based on its SEC filing.
In the first half of 2023, BitFuFu generated $134 million in revenue from cloud mining and its proprietary mining operations, as stated in its F-4 filing with regulators. The company’s IPO comes at a time when Bitcoin mining activity has picked up significantly. The Bitcoin network’s hash rate, a measure of the processing power devoted to mining, currently stands at 638.05M, up 120% from 289.51M just one year ago.
This major increase in hash rate demonstrates Bitcoin mining’s rapidly growing demand as the blockchain network nears its next halving event. Despite the challenges of the crypto winter, the Bitcoin network has demonstrated resilience, as evidenced by its hash rate recently reaching an all-time high. Mainstream regulatory bodies are also paying closer attention to the crypto industry.
According to EY, crypto assets used to exist on the fringes of financial services, but in recent years have become more widely accepted. It’s no surprise regulators worldwide have increased efforts to ensure investor protection in the crypto economy. Beyond just Bitcoin itself, products like crypto stocks and ETFs are also seeing mainstream traction, as evidenced by oinbase">Coinbase’s excellent 2023 where its share price rose over 400%.
