Bitcoin Miner Rhodium Going Public Through Reverse Merger With SilverSun Technologies

Rhodium in January postponed what were then plans for an IPO at as much as a $1.7 billion valuation.

AccessTimeIconSep 29, 2022 at 4:54 p.m. UTC
Updated Sep 29, 2022 at 7:59 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Rhodium Enterprises has agreed to merge with publicly traded tech firm SilverSun Technologies (SSNT), which will bring the mining company to U.S. public markets.

It's no secret that miners have been struggling in recent markets thanks to the big plunge in bitcoin (BTC) prices. The bear market has also nearly closed the door on capital markets. Last week, Compute North, one of the largest mining hosting firms, filed for bankruptcy. Rhodium in January announced plans for an initial public offering in the $1.5 billion to $1.7 billion valuation range, but postponed those intentions just one week later.

Under the terms of the merger agreement, SilverSun shareholders will receive a cash dividend of no less than $1.50 a share – roughly $8.5 million in total – and one share of stock in a newly created subsidiary housing SilverSun's legacy businesses, according to a company press release.

The deal is scheduled to be completed by the end of the year, with investment bank B. Riley acting as a financial advisor to Rhodium, the press release added.

SilverSun shares were up 19.4% in Thursday afternoon trading.




DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.