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Bitcoin mining firm Rhodium Enterprises plans to raise up to $100 million via an initial public offering. The Delaware-based company will use the funds to expand its crypto mining operations by purchasing additional mining rigs and opening a new site next year.
In a filing with the United States Securities and Exchange Commission (SEC), Rhodium revealed that it will offer Class A common stock to raise up to $100 million for its expansion plans. The common stock will have a par value of $0.0001 per share.
The Bitcoin mining company will trade under the RHDM ticker, according to Coindesk. Rhodium generated $48.2 million in revenues and a net income of $14.9 million for the six-month period ended on June 30, 2021. The firm’s posted earnings before interest, taxes, depreciation (EBITDA) of $40.9 million for the same period.
“We intend to contribute the net proceeds of this offering to Rhodium Holdings in exchange for Rhodium Units,” the company explained. “Rhodium Holdings will use such proceeds to construct new sites and for general corporate purposes, including the purchase of miners.”
According to the Bitcoin miner, its 80 megawatts (MW) of power capacity can support more than 22,600 miners in its first mining site located in Texas. The combined hash rate of its crypto mining rigs is around 1.8 exahash per second (EH/s).
The company expects to add another 45 MW of power for the site by the end of the year. Rhodium expects to increase its operation’s hashrate capacity to around 2.7 EH/s by the end of 2021.
Rhodium is already preparing to open up a second mining facility, which will also be located in Texas. “On August 31, 2021, we entered into a lease agreement and an energy supply agreement for a second Texas site (our “second Texas site” and, together with our initial Texas site, our “sites”) where we expect to develop 225 MW of additional capacity,” the firm added.
The company said that the first miner on its second site will be online by April 2022. However, the project is scheduled for completion by the end of 2022.
The firm’s mining operation enjoys lower than average production costs compared to its peers. “Our infrastructure platform allows us to mine bitcoin at a significantly lower cost compared to the industry average,” Rhodium said. “For the period from July 1, 2021, to September 30, 2021, our average electricity cost to produce one bitcoin was approximately $2,145.”
This is made possible by the use of the firm’s proprietary liquid-cooling technology that allows it to mine more efficiently. “We believe that our liquid-cooling technology extends the mechanical useful life of our miners by 30% to 50% relative to manufacturer specifications based on internal testing.” Rhodium added.
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