Hydrominer GmbH, an Austrian cryptocurrency miner that mines Bitcoins using green energy, is considering an initial public offering in order to fund its expansion to other regions. The company already had an Initial Coin Offering earlier in November, 2017, in which it raised around $2.8 million, but now believes that the move to list its shares will provide it with a much-needed avenue for raising more funds safely.
The company is going to list its shares on the London’s AIM stock exchange and other similar markets in 2018. It’s currently courting regulations in the U.K. in order to guarantee investor confidence in the ever-growing cryptocurrency market.
I want investors to be able to invest in a company that is genuinely risky but that operates within a framework which is secure,
Said Davies Guttmann, the Chief Financial Officer of the company.
The Vienna-based miner expects to raise double-digit millions in the IPO. “We will not be able to raise more money than we could use,” The CFO added.
Using Green Energy to Mine Bitcoin
Mining bitcoins requires a lot of energy, which means that the venture is expensive if the electricity cost is high. Well, not for Hydrominer. The company utilizes green energy to run miners to cut down on the costs and make the business profitable. The mining rigs are operated within modular shipping containers located near a hydroelectric power station in Alps. For this reason, it only pays only 4.5 cents a kilowatt/hour, which is approximately 85% lower than the average amount in the EU.
The company also claims to be on the negotiating table with the aim of setting up ventures in Eastern Europe, Canada and Austria. It’s expected that a partnership deal could come soon (within months), according to the CFO. The long-term plans of Hydrominer are to become an infrastructure provider in the cryptocurrency space, offering skills, software and hardware.
Image Credit: Deposit Photos
What do you think about Hydrominer seeking more funds in an IPO this year? Why the traditional security markets? Let us know what you think about this move in the comments below.