A US initial public offering (IPO) is apparently being considered by cryptocurrency mining company Genesis Digital Assets, which is supported by Sam Bankman-Fried’s defunct hedge fund, as the industry grows. As per the sources cited by Bloomberg, Genesis Digital Assets is presently conferring with advisors over the potential listing. The mining business plans to launch a pre-IPO investment round, which is anticipated to start in the upcoming weeks, according to an unnamed source.

Genesis Digital Assets Considers IPO in US

Plans for an IPO by the business come after major expansion efforts this year. Genesis Digital Assets launched a 36MW plant in Texas before opening a new mining centre in Argentina in May. The article stated that although Genesis Digital Assets has not yet provided an official statement on the situation, the talks are still ongoing and the fundraising plans may alter. As one of the top cryptocurrency miners, the company currently manages 20 data centres and more than 500 megawatts of electricity capacity spread across North America, Europe, Central Asia, and South America. Its website indicates that company has offices in Dubai and Houston.

For the uninitiated, Genesis Digital Assets originated from one of the first crypto-mining firms and secured over $1 billion in funding from Alameda Research, previously overseen by Bankman-Fried before his dramatic downfall. The investments were made in four separate tranches: $100 million in August 2021, $550 million in January, $250 million in February, and lastly $250 million in April 2022. An internal spreadsheet listing FTX and Alameda’s venture portfolio, reviewed by Bloomberg, indicated that the crypto mining firm was valued at $5.5 billion in April 2022.

Post FTX-Triggered Meltdown

The mining sector had a major collapse after FTX and Alameda declared Chapter 22 bankruptcy, sparking a catastrophe in the digital assets sector. This, in turn, aggravated the situation for Bitcoin miners, causing a considerable number of them to declare bankruptcy as the crypto winter of 2022 intensified. However, the industry has experienced a strong rebound in the previous two years, resulting in Bitcoin’s price reaching an all-time high. Bankman-Fried, the disgraced executive, was found guilty on all seven counts of fraud, conspiracy, and money laundering. On March 28, this year, he received a 25-year prison sentence and was ordered to forfeit $11 billion.