Genesis Digital Considers US IPO for Public Market Entry: Report

Genesis Digital Assets (GDA) is reportedly exploring an initial public offering in the US amid the crypto industry’s resurgence.

Bloomberg reported Tuesday that the crypto miner, backed by Sam Bankman-Fried’s former hedge fund Alameda, is collaborating with advisors to evaluate the potential listing.

The company reportedly intends to initiate a pre-IPO funding round in the upcoming weeks. Discussions are ongoing, and the specifics of the fundraising strategy may still change.

A GDA spokesperson declined to comment on the potential IPO when contacted.

Fueled by the recent crypto market recovery, several crypto companies are exploring going public through IPOs. However, their path isn’t without challenges. Regulatory bodies like the SEC are casting a more watchful eye on the industry, and Bitcoin mining profits have recently dipped due to the halving, declining hash price and hash rate.

Bitcoin miner Genesis Digital Assets is eyeing a U.S. IPO. Alameda has invested over $1 billion, potentially benefiting creditors. 👀

— Crypto Crib (@Crypto_Crib_) July 3, 2024

Crypto Miner Genesis Scored Big Funding Before FTX Collapse

Genesis Digital Assets secured a major funding boost over $1b from Alameda Research, a hedge fund tied to Sam Bankman-Fried. This investment, one of the biggest ever for a crypto startup, happened between Aug. 2021 and April 2022. Alameda Research, prior to its downfall, was closely associated with FTX, another company Bankman-Fried founded.

The investment was allocated toward operational expenses and purchasing shares from Genesis co-founders. Bankman-Fried joined Genesis Digital Assets’ board in Oct. 2021 but resigned a day before FTX filed for bankruptcy in Nov. 2022.

GDA has a total power capacity exceeding 500 megawatts, Bloomberg said. Its extensive network spans across four continents with 20 data centers strategically located in North America, Europe, Central Asia, and South America. It also maintains offices in Houston and Dubai.

Once High-Flying Miner Seeks Recovery

Back in April 2022, GDA was reportedly riding high with a valuation of $5.5b during a fundraising round. However, the crypto mining industry took a major hit later that year as Bitcoin prices plummeted, and both FTX and Alameda filed for bankruptcy.

Despite the setback, the recent surge in Bitcoin prices has led to a significant recovery for the entire sector.