The Initial Public Offering (IPO) for Texas-based Bitcoin miner Rhodium Enterprises is another part of the cap of the Bitcoin-friendly Southern State.
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The first IPO for the crypto industry in 2022 comes from a Texas-based Bitcoin (BTC) mining company, Rhodium Enterprises.
In an SEC filing made last week, Rhodium plans to offer 7.69 million shares at $12-14 per share in an initial public offering (IPO). . Trading under the ticker “RHDM” on Nasdaq, 56.8 million Class A shares and 67.5 million Class B shares will be issued, ultimately valuing the company at just $1.7 billion.
Rhodium is a cryptocurrency technology company that uses proprietary technology and liquid cooling technology to mine Bitcoins on its own. Their goal is to be the most sustainable and cost-effective Bitcoin producer in the industry.
The company joins a growing list of US-based companies that mine Bitcoin. Over the past three years, Marathon, Bitdeer Systems, Riot Blockchain and Bit Digital have listed on stock exchanges like NASDAQ.
According to the filing, Rhodium currently operates 125 megawatts (MW) of mining electric capacity at its first site in Texas. 33,600 Bitcoin miners are running, generating a combined hash rate capacity of about 2.7 EH/s.
Following the IPO and raising $100 million, it will run a second location in Texas, where it “expects to develop an additional 225 MW of capacity.” By the end of 2022, the company will more than double its current capacity.
Note that the average cost per BTC in 2021 is around $47,000, their electricity cost base is staggering:
Our infrastructure allows us to mine Bitcoin at a cost significantly lower than the industry average. Between January 1, 2021 and September 30, 2021, our average electricity cost to produce one Bitcoin is around $2,507.
Related: Mr. Wonderful plans to invest in mining company shares
Texas continues to build a reputation as a Bitcoin mining-friendly state. In Q4 2021, Senator Ted Cruz commented that Texas should use Bitcoin mining to recover wasted natural gas while the Electrical Reliability Council of Texas (ERCOT) predicts that mining electricity demand Texas Bitcoin mining could grow 5x by 2023.
Rhodium takes advantage of the “independent electricity market and abundance of low-cost renewable energy sources” and Texas’ pro-Bitcoin business climate.
Given the company’s experience in efficiency and liquid cooling technology for tiny Bitcoin miners looking to solve valid blocks, it’s just a bit harder.