The crypto mining company, Genesis Digital Assets is contemplating going public through IPO with crypto services offerings in the United States. The firm, previously backed by Sam Bankman-Fried’s hedge fund Alameda Research, is making this move in order to expand its business and potentially raise more funds. The firm believes that there is a good opportunity in the current market conditions to grow further.
The Genesis Digital IPO Plans
Initial Public Offering (IPO) is when a company sells its shares to the public for the first time on a stock exchange to raise capital. The firm has kept its intentions discreet as it gears to initiate a pre-IPO funding round, possibly from next week per a Bloomberg report.
These updates were revealed by an insider who pleaded anonymity. The sources claimed that the firm is actively in talks with advisors about its plans and possibly, the fundraising details might change. Lately, crypto exchanges and investors have shown interest in extending their crypto trading futures to the United States.
However, with the added scrutiny from the US Securities and Exchange Commission (SEC) and other regulators, along with reduced mining profits following the Bitcoin halving update in April, it appears quite challenging.
Genesis Role In the Industry
Genesis Digital remains one of the top players in the crypto industry. Its started its operations in Iceland in 2014, and operated mining in China until the 2021 ban. In the same year, the firm raised over $550 million and expanded quickly in the US.
In April 2022, GDA was valued at $5.5 billion in a funding round. The crypto mining sector faced challenges when FTX and Alameda declared bankruptcy. However, it made a strong comeback, driven by the optimistic outlook of investors despite the existing Bitcoin prices.
The push for public listing stems from the confidence in the future of the coin. With spot Bitcoin ETFs driving demand, most miners have a lot to gain in the long term.
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