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BitFuFu postponed its public listing, following stablecoin issuer Circle which terminated its intention to go public in December.
The world’s first crypto mining standardization platform BitFuFu has rescheduled its public listing plans via a special purpose acquisition company (SPAC). This follows the company’s announcement in January 2022 to list in the US by merging with Arisz Acquisition Corp. The plan was for the joint venture to be renamed BitFuFu Inc., listing on the Nasdaq in the third quarter of last year. Also, BitFufu was scheduled to trade under the ticker “FUFU” after its US public listing. According to the announcement of the SPAC in January last year, the existing shareholders will hold onto their equity in full after the completion of the deal.
BitFuFu Further Delays Public Listing
Against the previous public listing scheduled for the 22nd of February, BitFuFu is further delaying its public listing till the 22nd of May, 2023. If the company fails to complete the deal by then, it will no longer be able to postpone the merger again. Under Arisz’s governing documents, the cloud mining firm could push the merger back by three months.
Crypto firms are reconsidering raising funds at a time the entire industry is struggling to survive through this tough time. The collapse of major companies, starting with FTX, and the increased attention from authorities are affecting the crypto market. Not only did FTX stir commotion, but it also dragged many companies along with its drama, leaving investors in losses. The latest firm caught in the FTX-web is Silvergate Bank (NYSE: SI), which is now under the eagle eye of the US Department of Justice’s fraud unit. The regulator is exploring if the financial institution had any fraudulent relationship with the bankrupt exchange. Upon news of the investigation, Silvergate dropped 13.16% to $18.21.
More Companies Cancel Listing Plans
Amid the ongoing events, BitFuFu postponed its public listing, following stablecoin issuer Circle which terminated its intention to go public in December. Circle canceled its agreement with SPAC Concord Acquisition Corp after a nod from the Board of both companies. However, the stablecoin issuer had a different reason for ending the deal. CEO Jeremy Allaire revealed that Circle “did not complete SEC qualification in time.”
In the season of postponed or canceled public listing plans, crypto mining firm Bitdeer said in an SEC filing that its deadline for a SPAC deal could be extended by a year. According to the November documents, the Board of Directors has determined that moving the merger to the 14th of December, 2023 is in the best interests of the company’s shareholders.