Crypto miner Bitdeer’s SPAC has applied for a $4 billion valuation for another three-month extension.
Blue Safari Group, a special purpose acquisition company, was supposed to merge with BitDeer by June 14 but has submitted an extension to push the deadline back to September 14. The collection was originally announced in November 2021.
SPACs act as blank check companies. It is incorporated and registered with the US Securities and Exchange Commission (SEC) to raise capital and create a company for an initial public offering through acquisition or merger. These investment vehicles have become a popular way to make companies public as they bypass the longer process of an initial public offering or initial public offering.
But the bear market has left many crypto companies waiting in the wings or worse.
Each delay required a cash injection of $575,000 from Bitdeer. A press release filed with the SEC states that “Bitdeer has agreed to lend to the company.” [Blue Safari Group] Total capital of $1.99 million in two tranches.
Subject to the terms, this second extension is the last extension that can be covered by the loan. It carries no interest and does not have to be repaid until the companies have completed their merger.
With its latest extension, Blue Safari Group will now have until December 14 to complete its merger with Singapore-based mining company Bitdeer founder Jihan Wu.
What is Bitdir?
Wu is considered a legend in the crypto community because of his role in translation Satoshi NakamotoThe original Bitcoin to Mandarin white paper in 2011.
Since 2013, he has co-founded Bitmain, the Beijing-based hardware company that has become synonymous with application-specific integrated circuits (ASICs) that drive Bitcoin mining platforms.
After stepping down as the co-CEO of Bitmain in 2019, he founded the crypto financial services company Matrixport. Since 2020, he has turned his attention to Bitdeer.
“As a leader in cryptocurrency mining, we will continue to cement our leadership position in the crypto mining industry,” Wu said of the merger when it was first announced last year. “Today marks an important milestone for Bitdeer, and we look forward to creating value for our broader group of stakeholders in the future, including our customers, our employees, and our shareholders.”
Crypto SPAC misses target
The ongoing crypto winter has stymied the recent SPAC deals in the crypto space.
The US dollar issuer, trading platform eToro and Bullish Group have delayed their plans to go public through SPACs.
In July, VCV Digital Technology, a $294 million crypto-mining company, ended its plans to go public by merging with the Fortune Rise Acquisition Corporation.
And last week, crypto miner PrimeBlock saw its CEO Gaurav Budhrani step down after canceling plans to merge with 10X Capital Venture at a valuation of $1.3 billion.
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