Core Scientific will list on Nasdaq: what we know about the crypto miner

Core Scientific Holding Co., a cryptocurrency mining operator, confirmed Wednesday morning in a press release it will become a public entity via a SPAC deal with Power & Digital Infrastructure Acquisition Corp. As part of the merger agreement, Core Scientific will be worth roughly $4.3 billion.

Blockchain infrastructure and mining company

Core Scientific is the largest blockchain infrastructure, hosting provider, and digital asset miner in North America, the company said in a press release. Core Scientific boasts an estimated year-end power capacity of around 510 megawatts across four facilities in the US. Core also holds more than 70 blockchain and infrastructure-related patents and applications.

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During the second quarter of 2021, Core Scientific mined 928 Bitcoins for a total of 1,683 Bitcoins mined in the first half of 2021.

The combination with Power & Digital Infrastructure will better position Core Scientific to mine for digital assets and offer hosting and other blockchain services at scale. Core Scientific operates as a 100% net carbon neutral entity and is committed to clean and renewable energy to support the global decentralized finance industry.

Core Scientific’s pending acquisition of Blockcap, a digital asset mining company, will further strengthen its leadership position and value creation potential through DeFi products and services.

It is not yet known when Core Scientific will make its Nasdaq debut and what ticker symbol it will trade under.

Financial outlook and use of proceeds

Core Scientific is modeling 2021 revenue to be $493 million and adjusted EBITDA of $203 million. Looking forward to 2022, the company expects revenue to more than double to $1.1 billion while adjusted EBITDA is expected to be 50%.

Core Scientific expects to raise more than $300 million of net cash proceeds from the transaction. Management expects to use the cash to fund its mining equipment purchases and infrastructure and expand its leadership position.

Mike Levitt will continue serving as Co-Chairman and CEO of Core Scientific. He said in the press release:

We have built the largest blockchain hosting provider and digital asset miner in North America. Our diversified business is positioned to continue supporting the growth and adoption of digital assets globally. We are successfully leveraging our first mover advantage, scale, proprietary designs and software, network of strategic relationships, and culture of innovation to create value for our customers and stakeholders