Gryphon previously terminated plans to go public via a reverse merger with Sphere 3D.
By Aoyon Ashraf
Jan 27, 2023 at 9:26 p.m.
Updated Jan 27, 2023 at 10:32 p.m.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ZZS5K5WBZZHO7HHQOPBPBI7OOE.jpg)
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Private bitcoin miner Gryphon Digital plans to go public with a merger with publicly traded cannabis company Akerna (KERN) in an all-stock deal.
The new company will assume Gryphon’s name and be headquartered in Las Vegas, Nevada, after the deal closes, according to a statement. The miner’s current equity holders are expected to own about 92.5% of the new publicly traded entity, while Akerna’s shareholders will own about 7.5%, the statement added.
The CEO of Gryphon, Rob Chang, will be the new CEO of the publicly traded company. The CEO of Akerna, Jessica Billingsley, will be on the board of the new company, and six of the remaining seven members will be designated by Gryphon.
Akerna’s top three investors include Vanguard (2.6% ownership as of Sept. 2022), Perkins Capital (2% as of Dec. 2022) and BlackRock Fund Advisors (1.2% as of Sept. 2022), according to FactSet data.
The deal comes after Gryphon terminated its drawn-out process to go public via a reverse merger with publicly traded data management firm, Sphere 3D (ANY). The proposed deal was announced in 2021, and the closing of the deal was pushed back multiple times due to the complicated regulatory approval process before the deal was eventually terminated.
Read more: Gryphon Digital Mining Ends Plans to Go Public Through Merger With Sphere 3D
Gryphon also found itself in the middle of controversy last year after Sphere 3D signed a $1.7 billion deal with unknown mining-rig manufacturer NuMiner. The deal came under serious scrutiny by the mining community after several red flags were raised about the viability of NuMiner.
Gryphon, which started mining operations in September of 2021, has a potential revenue-generating profile of 1.1 exahashes per second (EH/s) on a cost basis of 0.75 EH/s, according to the statement.
The shares of Akerna fell about 15% on Friday, trading around $1.51 each. Akerna has a market capitalization of about $8 million, according to TradingView.
UPDATE (Jan. 27, 16:01 UTC): Added information on Akerna’s investors.
Read more about
Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas.Email addressSign Up
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/bb309bb1-0ea7-48d7-92ee-204c267878d0.png)
Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
