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Chia Network, a green blockchain firm based in San Francisco, California, has commenced the process of launching an initial public offering (IPO) in the US. The startup announced on Friday it had submitted a draft registration statement to the Securities and Exchange Commission (SEC), though the size and the price range of the IPO have not been determined yet.
Chia Joins Crypto Peers in the IPO Race
Eco-friendly blockchain platform Chia Network said on Friday it has confidentially filed a draft registration statement on Form S-1 with the SEC, moving closer to launching the proposed IPO in the US. The IPO size and price range are yet to be determined, Chia said in the announcement, adding it expects to commence the offering after the SEC concludes its review process.
Chia’s plans to go public were revealed in 2021 – arguably the best year for crypto – when the blockchain firm bagged $61 million in a Series D funding round that took its valuation to $500 million. The round was spearheaded by Andreessen Horowitz (a16z) and Richmond Global Ventures.
However, earlier this year, Chia’s recently-appointed CEO Gene Hoffman said the startup had no plans of launching an IPO in 2023 due to unfavorable market circumstances. But now, Chia has joined various crypto companies with similar aspirations.
Last year, Kraken co-founder Jesse Powell said the crypto exchange was eyeing a potential public listing when he announced his decision to step down as the company’s CEO. Recently, crypto mining firm Bitdeer made its public debut on April 14, following its merger with a blank-cheque company.
What is Chia Network?
Founded in 2017, Chia Network is a crypto startup focused on developing an eco-friendly, less-energy-intensive blockchain platform that uses recycled hard drives to store data. The startup reduces carbon emissions through the so-called proof-of-space-and-time protocol, which consumes significantly less energy than other crypto-mining models that rely on powerful graphics processing units (GPUs) and processors.
The startup claims to use roughly 0.12% of the energy the Bitcoin network consumes annually. In 2021, Chia launched a native green digital token called Chia (XCH), which enabled “smart coin” transactions and rewarded farmers on the Chia blockchain.
The significant energy consumption by some cryptocurrencies has been criticized for some time now, particularly Bitcoin, which is estimated to consume 127 terawatt-hours (TWh) a year — more than many countries worldwide. Ethereum too, was previously a power-hungry blockchain, but its energy efficiency has improved drastically since the Merge.
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