Bitdeer could delay $4bn SPAC

Cryptocurrency miner could postpone public listing by up to 12 months

Crypto Miner                                 
Cryptocurrency
                                

The cryptocurrency miner Bitdeer could be about to delay its $4bn public offering by up to a year, a filing with the US Securities and Exchange Commission (SEC) has indicated. 

Blue Safari Group, the special purpose acquisition company (SPAC) that was supposed to merge with Bitdeer in December, admitted: “There may not be sufficient time… to hold a shareholders’ meeting to obtain the requisite shareholder approval of, and to consummate, the [merger].” 

The deal was first announced in November 2021 but has previously been delayed twice. The latest filing requested discretion from shareholders for another four three-month extensions.

Pressure piles on SPACs and cryptos

SPACs grew in popularity in 2020 and 2021 as a way to accelerate the listing process. Instead of undertaking initial public offerings (IPOs), firms would merge with blank-cheque public companies that were established to raise funds. 

This popularity has waned throughout 2022 after a number of high-profile SPAC failures and a change in the macroeconomic landscape. 

The runaway momentum enjoyed by the cryptocurrency sector similarly faded, with the cryptocurrency market’s total market capitalisation falling by as much as $2trn. 

The industry’s shift from proof-of-work verification to the less energy-intensive proof-of-stake mechanisms has put further pressure on cryptocurrency mining firms. 

Bitdeer, founded and led by the prominent mining figure Jihan Wum, offers cloud-mining services. Clients rent computing power from the company’s machines instead of having to invest in their own. 

Should the deal be delayed beyond its December deadline, Bitdeer will join the likes of Bullish Group, VCV Digital Technology and the USDC issuer Circle, in postponing their SPAC plans. 

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