The Texas-based bitcoin mining giant is reaching a merger deal with SilverSun Technologies, a publicly traded enterprise technology solutions provider, as Rhodium plans to list on Nasdaq after an initial delay.
Meanwhile, the crash in BTC price and the ongoing crypto winter has caused bitcoin mining companies to struggle to stay afloat.
Rhodium takes another shot at going public
In an announcement on Thursday (September 29, 2022), the merger between SilverSun and Rhodium was unanimously approved by the boards of directors of both companies.
Part of the terms of the agreement provides that each SilverSun shareholder will receive a cash dividend of a minimum of $1.50 per share, or approximately $8.5 million. Shareholders will also receive a share of a stock dividend in a newly created SilverSun subsidiary called SWK Technologies.
Commenting on the latest development, Rhodium Chairman and CEO Chase Blackmon said:
“We are confident that this strategic transaction will unlock long-term accretive value for Rhodium shareholders. We believe access to US capital markets is critical to the long-term, sustainable success of our capital-intensive industry.
SilverSun CEO Mark Meller was also optimistic that the merger deal would benefit the company’s shareholders, customers and employees. Meller further said of the proposed deal:
“We also believe it offers our shareholders the opportunity to realize a substantial upfront cash payment while continuing to benefit from the value of our existing business and provides them with the opportunity to participate in the potential upside of Rhodium at an exciting time. for the cryptocurrency market.
The merger agreement is expected to be finalized by the end of 2022, subject to regulatory approvals, as well as approval by shareholders of both companies.
Rhodium, which develops proprietary software and liquid cooling technology to self-mine bitcoin, has been planning an initial public offering (IPO) since 2021. However, the company has postponed its IPO plans to January 2022, citing the market conditions.
Crypto Winter Affecting Bitcoin Mining Companies
The current cryptocurrency winter has seen bitcoin mining companies struggle to stay in business. In July, BTC mining hosting service Compass Mining laid off 15% of its workforce and also adopted cost-cutting measures in response to the bear market.
In September, another mining company Compute North filed for Chapter 11 bankruptcy, saying the company owed $500 million to as many as 200 creditors.
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The Texas-based bitcoin mining giant is reaching a merger deal with SilverSun Technologies, a publicly traded enterprise technology solutions provider, as Rhodium plans to list on Nasdaq after an initial delay.
Meanwhile, the crash in BTC price and the ongoing crypto winter has caused bitcoin mining companies to struggle to stay afloat.
Rhodium takes another shot at going public
In an announcement on Thursday (September 29, 2022), the merger between SilverSun and Rhodium was unanimously approved by the boards of directors of both companies.
Part of the terms of the agreement provides that each SilverSun shareholder will receive a cash dividend of a minimum of $1.50 per share, or approximately $8.5 million. Shareholders will also receive a share of a stock dividend in a newly created SilverSun subsidiary called SWK Technologies.
Commenting on the latest development, Rhodium Chairman and CEO Chase Blackmon said:
“We are confident that this strategic transaction will unlock long-term accretive value for Rhodium shareholders. We believe access to US capital markets is critical to the long-term, sustainable success of our capital-intensive industry.
SilverSun CEO Mark Meller was also optimistic that the merger deal would benefit the company’s shareholders, customers and employees. Meller further said of the proposed deal:
“We also believe it offers our shareholders the opportunity to realize a substantial upfront cash payment while continuing to benefit from the value of our existing business and provides them with the opportunity to participate in the potential upside of Rhodium at an exciting time. for the cryptocurrency market.
The merger agreement is expected to be finalized by the end of 2022, subject to regulatory approvals, as well as approval by shareholders of both companies.
Rhodium, which develops proprietary software and liquid cooling technology to self-mine bitcoin, has been planning an initial public offering (IPO) since 2021. However, the company has postponed its IPO plans to January 2022, citing the market conditions.
Crypto Winter Affecting Bitcoin Mining Companies
The current cryptocurrency winter has seen bitcoin mining companies struggle to stay in business. In July, BTC mining hosting service Compass Mining laid off 15% of its workforce and also adopted cost-cutting measures in response to the bear market.
In September, another mining company Compute North filed for Chapter 11 bankruptcy, saying the company owed $500 million to as many as 200 creditors.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.