- The company was expected to go public in the third quarter of 2022.
- The latest move pushes back the public listing until May.
According to a statement released on February 7th, Bitfufu, one of Bitmain’s cryptocurrency enterprises, has delayed its ambitions to go public through a special-purpose acquisition company (SPAC) for a second time.
With a pro forma enterprise value of almost $1.5 billion, the company was expected to go public in the third quarter of 2022 after merging with SPAC subsidiary Arisz Acquisition Corp in January 2022. The latest move pushes back the public listing until May, allowing the firms to complete their merger.
A special purpose acquisition company (SPAC) is a company formed only to acquire or merge with another firm and generate funds via an initial public offering (IPO).
Prolonged Crypto Winter Effect
According to Arisz’s ordinances, this is the second of two extensions of three months each. In other words, the crypto cloud firm can’t postpone the merger again unless its shareholders agree on a change in its governing papers. In addition to giving Arisz more time to get things done, the change will also bring in an extra $690,000 for its business.
Bitmain, the crypto hardware business and its key founding team members made an early investment in BitFuFu. A strategic cooperation between Bitmain and BitFuFu was established in February 2022 with the goal of providing crypto-mining services that adhere to industry standards.
Many cryptocurrency companies’ intentions to go public have been delayed or scrapped due to the crypto winter and fluctuating market circumstances. USD Coin (USDC) issuer Circle announced the mutual cancellation of its merger with SPAC business Concord Acquisition on December 5th.