Bitfury Group made an announcement that it has sold 10,000,000 shares of the common stock of Cipher Mining Inc. at a price of $2.95 per share in a privately negotiated transaction.
Bitfury, a leading full-service blockchain technology company, completed the transaction, and the private sale of shares represented 4.95% of their current ownership of Cipher’s common shares. Cipher, a U.S.-based Bitcoin mining company, was a subsidiary of Bitfury prior to August 27, 2021. The net proceeds from the sale will be received by Bitfury, which amounts to $29,500,000.
Following the transaction, Bitfury will hold approximately 75.37% of the common stock of Cipher. In addition, the Company has entered into a 60-day lock-up agreement with respect to its remaining holdings of Cipher common stock. This agreement stipulates that Bitfury may not sell or transfer any of the common stock before January 15, 2024. Bitfury’s CEO, Founder, and Chairman, Val Vavilov expressed pride in being part of the formation of Cipher and emphasized the potential growth prospects of Cipher.
Bitfury mentioned that their involvement in the investment in Cipher allowed them to appreciate the competitive advantages of Cipher’s business model. Given its strong prospects for future growth, Bitfury felt that Cipher is currently undervalued, and the sale may help unlock shareholder value by increasing the stock’s liquidity, float, and trading volume. They clarified their pleasure with the investment made in Cipher and their intention to remain long-term investors.
The press release also added a disclaimer that it shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Furthermore, there shall be no sale of securities in any state in which such an offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
Bitfury is a world-renowned full-service blockchain technology company that delivers infrastructure products and services to power the Web 3.0 ecosystem. The company, established in 2011, builds on its heritage as one of the earliest Bitcoin miners and providers of Bitcoin mining equipment. Bitfury’s suite of products and services makes digital assets safe, sustainable, and useful while leveraging today’s cutting-edge technologies to solve the most pressing challenges of tomorrow.
The company aims to dominate the digital asset industry as one of the earliest providers of Bitcoin mining equipment. They have been providing mining equipment since 2011 and have now become a full-service blockchain technology company. The forward-looking but cautious CEO, Val Vavilov, hopes to keep the company competitive in an ever-changing environment through strategic and deliberate investments and business deals.
The sale of shares in Cipher Mining Inc. signifies Bitfury’s confidence in their long-term investment and their proactive stance on the value and growth prospects of Cipher. They have asserted themselves as players in the Bitcoin mining space and intend to continue as long-term investors.