Bitcoin Mining Company Rhodium wants to go public via SilverSun Fusion

The Texas-based bitcoin mining giant is entering into a merger agreement with SilverSun Technologies, a publicly traded provider of business technology solutions, as Rhodium plans to list on the Nasdaq after an initial delay.

Meanwhile, the drop in the price of BTC and the ongoing crypto winter has left bitcoin mining companies struggling to stay afloat.

Rhodium is making another shot at going public

In an announcement on Thursday (September 29, 2022), the merger between SilverSun and Rhodium received unanimous approval from the boards of both companies.

Part of the terms of the deal include that each SilverSun shareholder will receive a cash dividend of a minimum of $1.50 per share, roughly equal to $8.5 million. The shareholders will also receive a share of the dividend in a newly formed SilverSun subsidiary called SWK Technologies.

Commenting on the latest development, Rhodium Chairman and CEO Chase Blackmon said:

“We believe this strategic transaction will unlock long-term growth value for Rhodium’s shareholders. We believe access to US capital markets is critical to sustainable, long-term success in our capital-intensive industry.”

SilverSun CEO Mark Meller was also optimistic that the merger agreement would benefit the company’s shareholders, customers and employees. Meller further said of the proposed deal:

“We also believe it gives our shareholders the opportunity to realize a significant upfront cash payment while continuing to benefit from the value of our existing businesses and gives them the opportunity to participate in the potential upside of Rhodium at an exciting time for the cryptocurrency market .”

The merger agreement is expected to be completed by the end of 2022, subject to regulatory approvals, as well as approval from both companies’ shareholders.

Rhodium, which develops proprietary software and liquid cooling technology to self-mine bitcoin, has been planning an initial public offering (IPO) since 2021. However, the company postponed its IPO plans in January 2022, citing market conditions.

Crypto Winter Affecting Bitcoin Miners

The ongoing cryptocurrency winter has seen bitcoin mining companies struggling to stay afloat. In July, BTC mining hosting service Compass Mining shed 15% of its workforce and also adopted cost-cutting measures in response to the bear market.

In September, another mining company, Compute North, filed for Chapter 11 bankruptcy, stating that the firm owed a staggering $500 million to no fewer than 200 creditors.