Rhodium, the Texas-based bitcoin mining company has recently agreed to merge with SilverSun Technologies – a publicly traded business technology solutions firm – in order to prepare to enter Nasdaq’s list.
The merger of SilverSun and Rhodium was announced on Thursday (September 29, 2022) with unanimous consent from both businesses’ boards of directors.
As part of the agreement, each SilverSun shareholder will receive a cash dividend of at least $1.50 per share, or roughly $8.5 million. Shareholders will also get one share of a stock dividend in SWK Technologies, a newly formed SilverSun subsidiary.
“We believe this strategic transaction will unlock long-term accretive value for Rhodium’s shareholders.” Rhodium’s Chairman and CEO Chase Blackmon said. “We believe access to U.S. capital markets is paramount to sustainable, long-term success in our capital-intensive industry.”
SilverSun CEO Mark Meller expressed confidence that the merger deal will benefit the company’s shareholders, customers, and workers.
Meller went on to say that he believes that the fusion between the two companies will provide stockholders the opportunity to “realize a substantial upfront cash payment”. The Silversun CEO also spoke about how investors will benefit from the value of this transition, providing the opportunity to participate with Rodium at an “exciting time for the cryptocurrency market”
The merger deal is scheduled to be completed by the end of 2022, subject to regulatory clearances and stockholder approval from both firms.
Rhodium – a company that specialized in creating proprietary software and liquid cooling technologies to self-mine bitcoin – has been planning an IPO since 2021. However, citing market circumstances, alongside the infamous “crypto winter”, the business postponed its IPO plans for January 2022.
Mining Industries At Risk
Bitcoin mining businesses are trying to survive during the current cryptocurrency bearish market of 2022.
In reaction to the bear market, Compass Mining, a BTC mining hosting provider, laid off 15% of its workers in July and implemented cost-cutting measures.
On September 24th, another major bitcoin mining company “Compute North”, filed for bankruptcy after failing to come up with the capital necessary to run the mining business.
After Ethereum’s merge, over 260 thousand mining wallets were left without a token. As the cryptocurrency mining business tries to reinvent itself – many miners admitted to abandoning crypto mining for good.
The overall crisis in that sector can also be reflected in the prices of graphics processing units (GPU). These computer hardwares – which are essential for mining – have been significantly decreasing their value over the months as mining becomes disincentivized.