Celsius mining has completed the confidential draft registration agreement with the sec for its IPO launch. However, the SEC still needs to review the filing before approving it.
Celsius will make available other details of the IPO once the IPO filing is public. Examples of such information that would be made available include the number of shares and the cost per share.
Celsius Makes Some Hires To Prepare For This IPO
Before submitting the filing for this IPO, Celsius hired an ex-head of the financial department of the royal bank of Canada, Rod Bolger, three months ago. Before appointing Bolger, Celsius hired a new coo and CEO earlier in the year.
Celsius currently manages $16.8B worth of crypto assets (including BTC) and raised $750m from venture capitalists last year, with WestCap and one of Canada’s pension fund firms among the top backers in the funding round.
The firm’s website indicates that the company has over 1.5M customers and lists some of the services offered on the Celsius network. Such services include accepting crypto deposits, providing loans for crypto holders using their cryptos, and providing over 17% in yield for deposits.
Following an investment of $200M in three smaller BTC mining firms (Core Scientific, Rhodium enterprises, and Luxor mining), Celsius CEO, Alex Mashinsky, stated that “Celsius invested in these companies because it recognizes BTC as the leading force in the digital asset space.
Also, these companies are utilizing renewable resources for their BTC mining which would make BTC mining more attractive in the North American region.”
Will Celsius Mining’s IPO Be A Success?
Considering that crypto mining has generated a bad press among the public, potential investors may have a negative bias toward investing in a BTC mining firm.
Another factor that may cause a negative bias for potential investors is the general downtrend in the crypto market. It became more pronounced following the de-pegging of Terra’s algorithmic stablecoin (UST) and native token (LUNA), negatively affecting crypto-related stocks.
Hence, investors may ‘ghost’ Celsius mining’s IPO offer unless the company offers a more compelling reason for its potential investors. For context, shares of Colorado-based riot blockchain have dropped from a high of $23 per share two months ago to $7.18 as of the close of yesterday’s trading session.
Similarly, shares of marathon digital holdings dipped to $10.31 from $31.13 per share within the same period mentioned above. Marathon is arguably the most prominent publicly-traded crypto mining firm in America.
While speaking during a recent interview with Bloomberg, one of Valkyrie investments’ top-level officers, Steven McClurg, stated that “many investors are converting their assets (crypto and stock) to cash at the same time. Hence, the broad risk-off is the primary cause of the general downturn in both markets.”
Stock prices of crypto mining firms hit all-time highs last year following china’s ban on all crypto-related activities because there was less competition for crypto mining firms in other regions. Furthermore, miners aren’t making as much profits as before as energy prices have gone up because of sanctions against Russia’s trade activities, including energy imports.