Bitcoin self-miner GRIID Infrastructure LLC is set to become a publicly listed company through a $3.3 billion business combination deal with Adit EdTech Acquisition Corp. (ADEX), a publicly traded special purpose acquisition company or SPAC.
Following the closure of the deal, the combined company is expected to operate under the name “GRIID Infrastructure Inc.” and be listed on the New York Stock Exchange or NYSE under the new ticker symbol “GRDI”.
Cincinnati, Ohio-based GRIID is a profitable, vertically integrated bitcoin self-mining company that owns and operates a growing portfolio of energy infrastructure and bitcoin mining facilities across the U.S.
GRIID supports the growth of carbon-free energy generation by procuring low-cost energy to build, manage, and operate its portfolio of vertically integrated bitcoin mining facilities. Carbon-free mining is the future of bitcoin.
GRIID has over 1,300 MW of mining capacity, of which 734 MW will be operational by 2023, with a breakeven bitcoin production cost materially below its peers and a cost of scaled bitcoin production of under $6,225 per BTC. The power cost will be less than $25/MWh. GRIID anticipates fiscal year 2023 revenue of $1.6 billion.
“We are building an American infrastructure company with the largest pipeline of committed, carbon-free power among public bitcoin miners at the lowest cost of scaled production,” said Trey Kelly, CEO of GRIID.
The transaction, unanimously approved by the board of directors of Adit EdTech and the board of managers of GRIID, is expected to close in the first quarter of 2022. However, it is subject to approval by shareholders of Adit EdTech and other customary closing conditions, including the receipt of applicable regulatory approvals.
Upon completion of the transaction, existing GRIID equity holders will own approximately 90 percent, Adit EdTech public stockholders will own approximately 8 percent and Adit EdTech’s sponsor will own approximately 2 percent of the outstanding shares of voting stock of the public entity.
GRIID’s existing management team, led by President and CEO Trey Kelly, will continue to lead the business.
The $246 million of anticipated net transaction proceeds, assuming no redemptions, and an existing $525 million credit facility will be used to fund GRIID’s growth and accelerate scale.
SPAC deals have become more common in recent years as a faster IPO process with less worry about the swings in broader market sentiment. SPAC is a shell corporation listed on a stock exchange with the purpose of acquiring a private company to enable it to go public without going through the traditional IPO process.
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