Bitcoin Mining Firm Rhodium Set for Crypto Sector's First IPO, to Offer Over 7 Million Shares

Rhodium Enterprises, a Texas, US-based Bitcoin mining firm, has planned the first initial public offering (IPO) from the overall crypto sector. An IPO is an act of offering stocks of a company on a public exchange for the first time. Rhodium plans to offer 7.69 million shares at $12–$14 (roughly Rs. 893–Rs. 1,041) each in its IPO. The firm aims to raise $100 million (roughly Rs. 744 crore) with this IPO to facilitate its future plans.

Rhodium uses proprietary tech and liquid cooling technology to self-mine Bitcoin, aiming to turn the process cost-efficient and sustainable.

In a filing with US' Securities and Exchange Commission (SEC), the company uses mining power capacity of 125MW in its mining site in Texas.

After the IPO, the firm plans on establishing a second mining site in Texas, expecting to be able to develop 225MW of additional Bitcoin mining capacity, a report by CoinTelegraph said.

The development comes at a time Texas is emerging as a Bitcoin mining hub in the US, while also facing troubles with the disrupted electricity supply.

The state offers a 10-year tax abatement, sales tax credits, and state-sponsored workforce training to crypto miners, attracting more of them, a report by Data Center Dynamics said.

As mining activities picked up speed in Texas, its electricity board found itself towards the receiving end of criticism for mismanaging power supply, leading to blackouts and no heat for days to sustain the winter. Hundreds of people had lost their lives during this time due to lack of heat and shortage of food.

Texas' grid operator Electric Reliability Council of Texas (ERCOT) has foreseen a five-fold increment in energy loads. In the next two years, by 2023, ERCOT predicts that it would have to produce at least up to 5,000MW more electricity to support crypto mining and data centres.

Complex proof of work algorithms are needed to be solved on advanced computers for cryptocurrencies such as Bitcoin to be mined. Since these computers need to be supplied with power constantly, they end up gobbling tonnes of energy.

This week itself, residents of Georgia's Svaneti town have reportedly been made to pledge a holy oath against indulging in crypto mining. The decision comes in the backdrop of power crisis impacting the region.