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Cloud mining firm BitFuFu postpones merger with SPAC until May

Bitfufu’s public debut has been postponed for the second time. The firm is the cloud mining division of the Chinese mining behemoth Bitmain.

According to a Feb. 7 announcement, cloud mining business Bitfufu, one of Bitmain’s crypto enterprises, is postponing its intentions to go public via a special-purpose acquisition company (SPAC) for the second time.

The business announced plans to go public in January 2022 through a combination with the SPAC company Arisz Acquisition Corp, with a pro forma enterprise value of almost $1.5 billion. The latest judgment pushes the public listing until May, allowing the businesses to complete their business merger.

“The Extension gives Arisz more time to execute its proposed business combination with Finfront Holding Company (“BitFuFu”),” according to the release.

The three-month extension is the second of two allowed by Arisz’s governing documents. In other words, the crypto cloud business cannot postpone the merger again unless its shareholders agree a change to its governing documents. Along with the increased deadline, the relocation will add $690,000 to Arisz’s operations.

BitFuFu was formed with early financing from Bitmain and members of Bitmain’s core founding team. Bitmain and BitFuFu formed a strategic cooperation in February 2022 to provide standardized crypto-mining services.

Many crypto firms’ intentions to go public have been hampered by market circumstances and the crypto winter. On December 5, the firm Circle, the issuer of the USD Coin (USDC), announced the mutual termination of its merger with the SPAC company Concord Acquisition. When the purchase was announced in July 2021, Circle was valued at $4.5 billion.

Bullish, a cryptocurrency startup, also revealed in December that it had cancelled a bid to go public after striking an agreement with Far Peak Acquisition. The business cited market circumstances and the Securities and Exchange Commission’s initiative to develop new rules for digital assets as grounds for not proceeding.

Over the last year, the IPOX SPAC index benchmark performance, which monitors the aftermarket performance of SPAC businesses, has declined by 9.04%.

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