Canadian bitcoin mining company Hut 8 Mining Corp. says it has raised $38-million in a private placement as it prepares to go public through a reverse takeover this quarter.
The Vancouver-based company – which operates data centres that generate cryptocurrency through a process referred to as mining – sold 15.2 million shares at $2.50 each on Dec. 20. The proceeds were comprised of $25,424,392 in cash and $12,575,607 in bitcoin, according to a company press release.
The money raised has been applied to Hut 8's acquisition of 22 bitcoin mining data centres from its partner, bitcoin mining giant Bitfury.
Bitcoin mining is a process in which computers solve complex mathematical problems and are rewarded with new bitcoin.
Hut 8 is looking to raise another $70-million in a second financing round in order to help it go public through a reverse takeover of Oriana Resources Corp., a capital pool company listed on the TSX Venture Exchange.
Hut 8 is expected to begin trading publicly during the first quarter of this year.
"The figures from our first offering reflect the market's excitement for Hut 8," Sean Clark, Hut 8's interim CEO, said in a statement.
He added that the public listing is "the kind of deal that, until now, has been largely inaccessible to investors."
"Through our public listing, and our exclusive relationship with Bitfury, we will soon deliver one of the largest cryptocurrency mining operations in North America," Mr. Clark said.