On Friday, Bitcoin (BTC) mining company PrimeBlock announced a merger with 10X Capital Venture Acquisition Corp II, a special purpose asset acquisition (SPAC) company. The deal values PrimeBlock at an enterprise value of $1.323 billion and is expected to close in the second half of the year.
The company has set 1.8 exahash per second for self-mining BTC, which is approximately 0.89% of the total hashrate of the Bitcoin network. According to PrimeBlock, its break-even price for mining is $9,000 per coin. Back in 2020, up to 59% of its energy sources were carbon-free. The firm aims to become carbon neutral on a zero basis by 2050.
Last year, PrimeBlock generated $21.8 million in revenue by mining 356.8 BTC. But in 2022, the firm expects to generate $220.1 million in revenue, or a projected 3,629 BTC, in part by rapidly expanding its mining capacity to over 10 exahashes per second. It also has a small Ethereum (ETH) mining operation that has mined 699 of these digital assets in 2021.
Regarding the business agreement, Hans Thomas, Chairman and CEO of 10X Capital, commented:
Gaurav and the leadership team […] successfully deployed over 110 megawatts of data center capacity and generated over $24 million in revenue in the fourth quarter. They have built strong relationships with key partners […] with a zero carbon commitment by 2050”.
