On April 1, 2022, PrimeBlock announced its merger with 10X Capital Venture Acquisition Corp. According to the press release, this was done in order to support and expand on PrimeBlock’s current emphasis on technologies in the blockchain ecosystem.
PrimeBlock provides infrastructure for various blockchain technologies and runs a Bitcoin mining operation. They also mine other digital assets. It was founded by Chandler Song and Ryan Fang, who are well-known Web3 entrepreneurs and are linked to popular crypto projects like ANKR. At the end of 2021, PrimeBlock reported that it had generated $24.4 million in revenue.
According to PrimeBlock, 60% of its power is derived from non-carbon emitting sources. This is in line with PrimeBlocks’ emphasis on being a responsible, ethical, and sustainability-focused company.
10X Capital moved to implement the merger with PrimeBlock because of their forward-thinking values, as the CEO explains, “10X Capital is focused on advancing environmental, social and governance (ESG) best practices and promoting Diversity, Equity, and Inclusion in our portfolio companies.”
The CEO of the resulting merger will be Gaurav Budhrani, who has previously worked as Goldman Sachs as VP and has experience with crypto investment banking. In total, Budhrani has worked as a consultant worth over $300 billion in cryptocurrency, among other kinds of deals.
The merger between PrimeBlock and 10X Capital Venture Acquisition Corp II is anticipated to be completed by Q2, 2022. A listing will also appear on NASDAQ around the same time.
The combined companies have secured approximately $300 million in committed equity financing facility from a Cantor Fitzgerald affiliate. The value of this merger is appraised at approximately $1.25 billion. This estimate is slightly lower than originally reported last year at $1.5 billion.