Celsius Mining LLC has filed a draft registration statement on Form S-1 with the Securities and Exchange Commission to go public.
Celsius Mining, a subsidiary of London-headquartered Celsius Network, has filed a confidential draft registration statement with the SEC for an initial public offering, which will undergo a review by the SEC. Celsius did not indicate in the filing how many shares would be available or what they would cost, data that will become available once Celsius publicizes the IPO filing.
The lead up to the filing
In preparation for this IPO, Celsius hired Rod Bolger, formerly the financial head of Canada’s largest bank, in February this year after appointing a new chief operating officer and chief investment officer in January. The company, which raised $750M from investors last year, including WestCap and a Canadian pension fund, holds $16.8B in assets under management, including bitcoin. It accepts crypto deposits, allows people loans against their cryptocurrency, and accepts deposits for a yield of 17.85%. It has 1.7 million customers, according to the company’s website.
Celsius invested $200M in Luxor Mining, Core Scientific, and Rhodium Enterprises last June. “Celsius recognizes that Bitcoin, as the flagship cryptocurrency, still sets the course for the crypto industry at large. As such, we have considered it a company priority to help vitalize Bitcoin mining in North America through renewable resources,” said Alex Mashinsky, CEO of Celsius.
Mining stocks have taken a hit year-on-year
Crypto mining has garnered a narrative of being bad for the environment, which may adversely affect investor sentiment. Considering how bitcoin and the broader cryptocurrency markets have been tracking falling tech stocks and how the de-pegging of TERRA and LUNA caused major shockwaves in the crypto market, investors could be spooked when Celsius holds its IPO. Stocks of Riot Blockchain, one of the biggest mining companies in the world based in Colorado, have fallen from highs of $23 per share on March 29, 2022, to $7.19 at market close yesterday, while Marathon Digital Holdings dropped from $31.14 to $10.32 per share during the same period. Marathon is the largest public miner in the U.S. “Crypto and equity markets are largely selling off in tandem due to a broad risk-off environment where many investors are moving to cash, Steven McClurg, chief investment officer at Valkyrie Investments, said on May 9 in a Bloomberg report.
Mining shares peaked last year together with Bitcoin, as China’s ban on mining paved the way for less competition. Miners’ profit margins have also tightened following higher energy prices stemming from trade sanctions on Russian energy imports.
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