This Crypto Miner Backed By SBF’s Alameda Research is Exploring IPO in US

Crypto mining firm Genesis Digital Assets – backed by Sam Bankman-Fried’s fallen hedge fund, is reportedly mulling over an initial public offering (IPO) in the US as the crypto sector gains steam.

According to Bloomberg sources, Genesis Digital Assets is currently consulting advisers on a possible listing. The mining company intends to initiate a pre-IPO funding round, which is expected to begin in the coming weeks, as per an anonymous source.

Genesis Digital Assets Considers IPO in US

The company’s IPO plans follow significant expansion activities this year. In May, Genesis Digital Assets opened a new mining center in Argentina, and prior to that, it announced a 36MW facility in Texas.

While Genesis Digital Assets has yet to comment on the matter officially, the report said that the discussions are still in progress and the fundraising plans could be subject to change.

Currently, the company operates more than 500 megawatts of power capacity and 20 data centers across North America, Europe, Central Asia, and South America, positioning it as a leading crypto miner. According to information on its website, it has offices in Houston and Dubai.

For the uninitiated, Genesis Digital Assets originated from one of the first crypto-mining firms and secured over $1 billion in funding from Alameda Research, previously overseen by Bankman-Fried before his dramatic downfall.

The investments were made in four separate tranches: $100 million in August 2021, $550 million in January, $250 million in February, and lastly $250 million in April 2022.

An internal spreadsheet listing FTX and Alameda’s venture portfolio, reviewed by Bloomberg, indicated that the crypto mining firm was valued at $5.5 billion in April 2022.

Post FTX-Triggered Meltdown

The mining sector faced a massive downturn after FTX and Alameda declared Chapter 22 bankruptcy, subsequently triggering a meltdown in the digital assets sector. This, in turn, further exacerbated the conditions for Bitcoin miners, even dragging a significant number of them into bankruptcy as the crypto winter of 2022 intensified.

However, the industry witnessed a strong resurgence in the last two years, ultimately driving Bitcoin’s price to an all-time high.

As for Bankman-Fried, the disgraced exec was found convicted on all seven charges of fraud, conspiracy, and money laundering. On March 28 this year, he received a 25-year prison sentence and was ordered to forfeit $11 billion.

The post This Crypto Miner Backed By SBF’s Alameda Research is Exploring IPO in US appeared first on CryptoPotato.