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Bitcoin mining business Iris Energy Pty is weighing offers from letterhead firms seeking to list the Australian company, according to people familiar with the matter, for the first such listing in the country.
People said the Sydney-based company had been approached by several acquirer companies for a deal they could potentially list in the US, which could raise $ 300 million to $ 500 million, and asked to remain anonymous when discussing confidential matters.
Iris is also considering options including traditional or direct listing on the Australian Stock Exchange or the Nasdaq, sources said.
Discussions are ongoing and there is no certainty that the company will continue listing, people said.
SPACs, which are shell companies that sell shares for listing on public stock exchanges with the stated purpose of finding and acquiring private businesses, became a $ 83 billion market last year, about 46% of the record 2020 US IPOs. , according to data to data collected by Bloomberg. ASX does not allow SPAC, and so far no Australian company has merged with one.
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Iris Energy co-founder and CEO Daniel Roberts said the company is looking to go public and is considering a number of paths to listing. The data center operator could also raise a new round of funding first.
“We are currently in talks with potential investors to hold another round of private equity in the near future as a bridge to public markets,” Roberts said in a telephone interview.
In March the company increased fundraising by AU $ 20 million ($ 15.5 million), citing strong investor demand ahead of what it said was scheduled for its first stock sale in mid-this year. The round was expanded again, Roberts said, and eventually raised AU $ 110 million.
The proceeds from the March fundraiser were used to build a 50-megawatt data center in British Columbia, Canada, in addition to the already-financed 30-megawatt project, the company said. Enterprises have installed equipment for mining bitcoins, running on renewable energy sources. Web site. In British Columbia, most of its electricity comes from hydropower.
Bitcoin is under increased scrutiny for the amount of energy used in its creation, especially in regions where electricity is generated by burning fossil fuels like coal. Bitcoin mining alone could account for annual carbon dioxide emissions comparable to Sweden’s, according to an estimate Digiconomist.
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Not only are Iris’ electricity providers using renewables, Roberts said, the company has agreements with them to cut production and redirect power to regional grids during periods of peak demand.
“Today we can sit here and say that clothes dryers and Christmas lights are a waste of energy, but ultimately the market decides where the energy should be directed and chooses bitcoin,” Roberts said. “We are asking how we can serve this market in a way that benefits the energy transition and employment in the regions.”