Bitcoin Miner Rhodium to List Shares in Chilly IPO Market
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Computers used to produce Bitcoins.
Federico Parra/AFP via Getty Images
Rhodium Enterprises, a Bitcoin miner, is braving a much-cooled IPO market to go public next week.
Rhodium, which didn’t list an address but said its mining facility is located in Texas, has filed to offer about 7.7 million shares at $12 to $14 each. It plans to trade on the Nasdaq under the ticker RHDM. B. Riley Securities and Cowen are lead underwriters on the deal, a prospectus said.
Rhodium is scheduled to price its deal on Wednesday, Jan. 19, and trade the next day, a person familiar with the situation said.
At $14, Rhodium’s valuation could hit $1.7 billion.
Rhodium is the latest Bitcoin miner to come to market.
Stronghold Digital Mining
(ticker: SDIG) soared 52% from its $19 IPO price in October, while
Iris Energy
(IREN) dropped 13% from its $28 offer price in November.
The Rhodium IPO comes during a slow time for new issues. IPOs performed poorly in the aftermarket last year with nearly 70% falling below their offer prices. This has cast a pall on offerings this year. Several have dropped below their IPO prices. On Thursday, TPG (ticker: TPG), the large private-equity firm, beat this trend when shares rose more than 15%.
Rhodium is a digital-asset-technology company that began mining Bitcoin in September 2020. The company claims that its liquid cooling technology allows it to mine more Bitcoin using fewer miners and to cause less damage to those miners. Its first Texas site has about 125 MW of power capacity to support about 33,600 miners, according to a prospectus. It is currently building a second site in Texas that it expects to be completed by the summer. It has secured approximately 225 MW to power about 65,200 miners at the second site, a prospectus said.
The company’s four founders—Nathan Nichols, Chase Blackmon, Cameron Blackmon, and Nicholas Cerasuolo—will own 54.3% of Rhodium after the IPO. Nichols is Rhodium’s CEO, Chase is chief operating officer, Cameron is chief technology officer while Cerasuolo is CFO.
For the nine months ended Sept. 30, Rhodium said its average electricity cost to produce one Bitcoin was about $2,507, one of the lowest in the industry.
Rhodium reported $46.1 million in profit for the nine months ended Sept. 30 on $82.1 million in revenue. The company had $8.4 million in digital assets as of Sept. 30, the prospectus said.
Write to Luisa Beltran at luisa.beltran@dowjones.com
