Bitcoin Miner Rhodium will list shares in the IPO cold market

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Computers used to produce Bitcoins.

Federico Parra/AFP via Getty Images

Bitcoin miner Rhodium Enterprises is braving a very chilled IPO market to go public next week.

Rhodium, which did not provide an address but said its mining facility is located in Texas, filed for an offer of about 7.7 million shares at $12 to $14 apiece. It plans to trade on the Nasdaq under the symbol RHDM. B. Riley Securities and Cowen are lead underwriters in the deal, according to a prospectus.

Rhodium is expected to price its deal on Wednesday, Jan. 19, and negotiate the next day, a person familiar with the matter said.

At $14, Rhodium’s valuation could reach $1.7 billion.

Rhodium is the latest Bitcoin miner to hit the market.

Stronghold Digital Mining

(ticker: SDIG) soared 52% from its October IPO price of $19, while

Iris Energy

(IREN) fell 13% from its $28 offer price in November.

Rhodium’s IPO comes during a slow time for new issues. IPOs performed poorly in the secondary market last year, with almost 70% falling below their offer prices. This cast a pall over the offerings this year. Several have fallen below their IPO prices. On Thursday, TPG (ticker: TPG), the leading private equity firm, beat that trend when shares rose more than 15%.

Rhodium is a digital asset technology company that started mining Bitcoin in September 2020. The company claims that its liquid-cooling technology allows it to mine more Bitcoin using fewer miners and cause less damage to those minors. Its first site in Texas has about 125 MW of electrical capacity to support about 33,600 miners, according to a prospectus. It is currently building a second site in Texas which it expects to be completed by the summer. It secured around 225 MW to power around 65,200 miners at the second site, according to a prospectus.

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 the CEO of Rhodium, Chase is the COO, Cameron is the CTO while Cerasuolo is the CFO.

For the nine months ended Sept. 30, Rhodium said its average electricity cost to produce one bitcoin was around $2,507, one of the lowest in the industry.

Rhodium reported a profit of $46.1 million for the nine months ended Sept. 30 on revenue of $82.1 million. The company had $8.4 million in digital assets as of September 30, according to the prospectus.

Write to Luisa Beltran at [email protected]

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