Finfront Holding Company, a fast-growing digital asset mining service and world-leading cloud-mining service provider (“BitFuFu” or the “Company”), and Arisz Acquisition Corp. (Nasdaq: ARIZ), a publicly-traded special purpose acquisition company(“ARIZ”), today announced that they have entered into a definitive business combination agreement that will result in BitFuFu becoming a publicly listed company on NASDAQ under an anticipated ticker symbol “FUFU”. The transaction values the Company at a pro forma enterprise value of approximately $1.5 billion.
BitFuFu Overview
BitFuFu is a fast-growing company in the crypto-mining industry and is dedicated to fostering a secure, compliant, and transparent blockchain infrastructure by providing a variety of stable and intelligent hashrate service solutions. BitFuFu offers a one-stop mining solution for miners of all sizes from institutional customers to individual digital asset enthusiasts. It manages mining machines and mines on behalf of its users, allowing users the option of viewing and managing their rigs conveniently in real-time.
BitFuFu’s innovative technologies are one of the key drivers for ensuring its leadership position in the industry. Its proprietary Aladdin system handles ultra-large scale hashrate management and dispatching. The system has the maximum capacity to simultaneously connect millions of miners and provide services that resolve critical mining problems arising from scalability, efficiency, authenticity, and securing hash power.
The Company had a hosting capacity of 140 MW at the end of 2021 across its global mining facilities network and strategic partnership with Bitmain.
BitFuFu received early investment from Bitmain, a world-leading cryptocurrency mining hardware manufacturer. The Company has been the only cloud-mining strategic partner of Bitmain to date and has executed a 10-year mining hosting contract with Bitmain, offering it competitive advantages such as preferential access to mining sites, miners, new markets, and improved operational efficiencies.
Transaction Overview
The Transaction values the combined company at an implied fully diluted pro forma enterprise value of approximately $1.5 billion3, representing a 4.6x 2022 projected revenue of approximately $330 million1, and 3.3x projected December 2022 annualized recurring revenue of approximately $465 million1.
The Transaction is expected to provide more than $129 million in net cash proceeds to BitFuFu at closing, after transaction expenses and assuming no redemptions of shares by ARIZ’s existing public stockholders. Existing BitFuFu stockholders are retaining 100% of their equity in the combined company. The proceeds from the Transaction are expected to fund mining equipment purchases and infrastructure build-out as the Company expands its leadership position in the industry.
The BitFuFu and ARIZ Boards of Directors have unanimously approved the proposed merger, which is expected to be completed in the third quarter of 2022, subject to, among other things, regulatory approval, the approval by BitFuFu’s and ARIZ’s stockholders of the proposed merger and satisfaction or waiver of other customary closing conditions.
BitFuFu’s management team, led by its founder Leo Lu, will continue to run the Company after the transaction.
Key Partner Remarks
Clark Du, President of Bitmain Mining Division commented, “Leo and his team have made remarkable contributions to Bitmain and I have strong faith in his ability to lead BitFuFu to the next level. BitFuFu is the only cloud-mining strategic partner of Bitmain to date, and I look forward to further strengthening our business partnership with BitFuFu in the foreseeable future. I would like to congratulate Mr. Lu and his team for achieving today’s milestone.”
Lei Lv, Autorized Representative of Antpool commented, “Participating in the PIPE financing is more than just an investment for us. BitFuFu has been a critical and long-standing strategic partner to Antpool in the global digital asset mining industry, and we have clear synergies to continue creating value. In the future, we will expand upon our various user acquisition and marketing collaborations to continue driving the rapid growth of our platforms.”
Management Remarks
Leo Lu, Founder, and CEO of BitFufu said, “Entering this transaction now is the most optimal and strategic timing for enduring our rapid growth trajectory and increasing our global footprint in the crypto-mining industry. We are the one-stop hashrate solution provider for miners of all sizes, providing a variety of innovative technologies, service solutions, and a global mining network to efficiently mine digital assets. Our highly diversified business model that will include cloud-mining, self-mining, and miner hosting will allow us to effectively manage market volatility and hedge against unforeseen regulatory changes. This milestone of becoming a publicly-traded company through our merger with ARIZ will further drive improvements to our corporate governance, increase transparency, and attract new talent to help us achieve our vision of becoming the top digital asset mining company.”
Echo Hindle-Yang, Chairwoman and CEO of Arisz Acquisition Corp. commented, “We are thrilled to enter into the merger agreement with BitFuFu. What Leo and BitFuFu team have been achieved to date attests to the management team’s excellent execution, industry expertise and the strong partnership with Bitmain. Our team at ARIZ strongly believes that BitFuFu’s strategy of streamlining the up and downstream industry resources provides them with a true competitive advantage and will allow them to continue replicating their successes. From now until the closing of the transaction, helping the company prepare and transition to the public markets is our focus, so we can work together and drive long-term value to all of the shareholders.”
