Chinese bitcoin mining company Saitech Ltd. will go public via a merger with a special-purpose acquisition company on Nasdaq.
The deal will see Saitech merge with TradeUP Global Corp for a pro-form equity value of $228 millions. TradeUP Global has $44.9 million of cash that will be used by Saitech to support its growth plans and provide additional working capital.
Saitech was founded in 2018, and used to be known as Saiheat. It offers a liquid cooling and heat-exchange technology that makes use of heat from waste heat. According to the company, its technology offers high-quality computing chips for hardware control and equipment control for electricity providers and energy providers. It also uses big data and artificial intelligence to encourage industrial upgrading.
Saitech is not just a company that provides energy to customers. The company also pitches itself as a Bitcoin mining company. Saitech currently has a 15MW power mining operation and another 90MW is under construction. This will be operational in the fourth quarter. In 2022, another 200-300MW will be available.
Saitech claims that it strives to be the most cost-efficient company in digital assets mining operations worldwide while simultaneously supporting the smooth transition of the bitcoin mining sector.
Arthur Lee, chief executive officer and founder of Saitech said that this was a significant milestone in our quest to become Eurasia’s largest bitcoin mining operator. He also stated that it would help us achieve our mission of encouraging the clean evolution in bitcoin mining. “Our Eurasia-scaled mining operations allow us to enjoy key diversification competitive benefits, such as lower electricity and infrastructure costs as we grow our self-mining Bitcoin business.”
It is timely to offer a more sustainable way to mine bitcoin. This comes at a time when bitcoin mining operations are being criticized for their energy consumption and environmental impact. Elon Musk, the founder of Tesla Inc., and CEO, has been one of the most vocal critics of bitcoin’s energy use. He pulled support for bitcoin payments in May due to environmental concerns.
Another interesting aspect of the announcement was that Saitech, a Chinese Bitcoin company, is going public in America. Although Didi Global Inc. has previously opposed Chinese companies going public, it also prohibited all cryptocurrency transactions from mainland China.
Saitech, which is a Eurasian company, may have its bitcoin mines outside the Middle Kingdom.
Saitech, which is now listed in the SPAC, has raised RMB 13,000,000 ($2 million) in funding. According to Crunchbase. Bitmain and Chuangshi Ziben are the investors.