Genesis Digital Assets, a Bitcoin miner, considers IPO in the US, per report
Genesis Digital Assets, a Bitcoin mining company based in Texas and backed by Alameda Research, is reportedly exploring the possibility of launching a pre-IPO funding round in the near future. Despite significant investment from Alameda Research, founded by Sam Bankman-Fried, Genesis Digital Assets is contemplating an initial public offering (IPO) in the United States.
A recent report from Bloomberg indicates that Genesis Digital Assets is actively in talks with advisors to accelerate its IPO preparations, with a focus on initiating a pre-IPO funding round within the upcoming weeks. The timeline for the IPO completion by the end of 2024 remains uncertain as discussions are still ongoing.
Established in 2013, Genesis Digital Assets has successfully secured over $1.61 billion in funding to date, including a substantial $1 billion investment from Alameda Research in April 2022, leading to a valuation surge to around $5.5 billion. The company operates a network of more than 20 data centers with a combined power capacity exceeding 500 megawatts spread across North America, Europe, Central Asia, and South America.
In a separate development, FTX and its associated entities, including Alameda Research, faced a crisis in November 2022 following accusations of embezzlement and misappropriation of customer funds amounting to billions of dollars involving the company’s owners and the hedge fund. The founder of FTX, Sam Bankman-Fried, received a 25-year prison sentence and was mandated to reimburse $11 billion in connection with the scandal.
The potential IPO move by Genesis Digital Assets comes against the backdrop of the tumultuous events involving FTX and Alameda Research. The company’s strategic decision to pursue public listing could mark a significant milestone in its growth trajectory and financial evolution.
As Genesis Digital Assets navigates the complexities of the IPO process, industry observers are keenly watching how the company will position itself in the market and capitalize on the growing interest in cryptocurrencies and blockchain technology. The outcome of the upcoming pre-IPO funding round and the subsequent IPO could have far-reaching implications for the company’s future prospects and the broader crypto mining sector.
