The Daily Dish (3/5/21)
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Bitcoin miner Cipher to go public via $2 billion SPAC merger
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Cipher Mining is a newly formed subsidiary of The Bitfury Group, a leading provider of Bitcoin mining hardware and other blockchain software and services. Cipher & Good Works Acquisition Corp $GWAC today announced they have entered a definitive agreement for a business combination. Since its inception in 2011, Bitfury Group has deployed more than 500+ MW of computing power and mined more than 600 thousand Bitcoin. Cipher is expected to reach a cumulative deployed capacity of 745MW by the end of 2025. As the projected largest scale mining platform in the U.S., Cipher will provide investors the opportunity to invest in the Bitcoin industry via a leading mining company operating in a highly transparent and well-regulated environment.
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The transaction values the combined company at an enterprise value of US $2.0 billion. Pursuant to the merger and following the share exchanges, the combined company is expected to receive approximately US $595 million in gross cash proceeds from a combination of cash from a US $425 million fully committed stock PIPE, including a $50 million investment in-kind from Bitfury, and approximately US $170 million in cash held in Good Works’ trust account. The PIPE is anchored by institutional investors including funds and accounts managed by Fidelity Management & Research Company and Counterpoint Global (Morgan Stanley). Current Cipher Mining shareholders will become the majority owners of the combined company at closing with approximately 70% ownership in the pro forma company and all existing shareholders and investors will continue to hold their equity ownership subject to a two year lock-up period.
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Good Works’ Co-Chairman, Doug Wurth, commented, “The Good Works team collectively has a long history in the alternative asset markets. We were attracted to Cipher Mining as we believe the Bitcoin mining space represents a compelling way to gain risk-adjusted exposure to the growing crypto ecosystem. We brought to the table experience in power hosting arrangements, which gave us a clear-eyed view of the advantages of Cipher Mining’s power contracts, and the extraordinary value of its partnership with Bitfury Group”
Walmart-Held Flipkart Reportedly Eyeing U.S. Listing Through Special-Purpose Acquisition Company Deal
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The frenzy in special-purpose acquisitions has billions of dollars chasing deals. One major target seemingly has put itself on the market. According to Bloomberg News, Indian e-commerce giant Flipkart is looking to go public in the U.S., possibly by merging with a SPAC. It would be a big acquisition. Flipkart, according to the report, is seeking a valuation of $35 billion. Walmart in 2018 bought a 77% stake in Flipkart for $16 billion.
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Flipkart’s financials aren’t broken out of Walmart’s results, though Chief Executive Kalyan Krishnamurthy last month participated in a Walmart investor presentation. He said Flipkart has over 300 million customers, and is investing heavily in technology and infrastructure. He also said Flipkart is now among the top five advertising platforms in India.
Humacyte agrees SPAC merger to go public with bioengineered tissue tech
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Human tissue bioengineering biotech Humacyte has entered into a business combination agreement with special purpose acquisition company Alpha Healthcare Acquisition Corp $AHAC.
The deal allows Humacyte to become a public company listed on the Nasdaq, with access to up to $100m in AHAC’s trust account.
In addition to the $100m in funding from the transaction, investors have participated in a $175m Private Investment in Public Equity (PIPE) investment at $10 per share into Humacyte. PIPE investors included OrbiMed, Alexandria Venture Investments and Fresenius Medical Care, a global renal disease healthcare provider already working in partnership with Humacyte.
As a result of the deal, Humacyte has been valued at $800m and is expected to have a market capitalisation of $1.1bn.
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Based in North Carolina, US, Humacyte specialises in developing off-the-shelf implantable bioengineered human tissue. It has developed human acellular vessels (HAVs) that support the repair, reconstruction and replacement of blood vessels across multiple indications.
These HAVs are universally implantable, highly resistant to infection and do not rely on donor tissue and related immunogenicity challenges, as well as being regenerative and self-healing. They are particularly useful to support haemodialysis for renal diseases, peripheral arterial disease and vascular trauma without the need for immunosuppressive drugs.
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The company’s CEO Dr Laura Niklason, who will remain in her position following the closure of the transaction, said: “Humacyte is a global leader in developing bioengineered tissues for use in regenerative medicine.” “Our innovative platform has the potential to support tissue repair, reconstruction and replacement without the limitations of existing standards of care.
“We are very pleased to have support from top-tier investors, and access to the US capital markets following the closing of this proposed transaction, which will leave Humacyte well-capitalised to provide first-in-class therapies to treat several life-threatening diseases.”
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