Chia Network’s Daring Public Move: Crypto Startup Defies Odds In Pursuit Of IPO
Benzinga – Cryptocurrency startup Chia Network Inc. announced on Friday that it has taken a significant step towards a U.S. initial public offering (IPO) by confidentially submitting a draft registration statement to the Securities and Exchange Commission (SEC).
In 2021, the company was valued at approximately $500 million, and the announcement mentioned that the size and pricing range for the proposed IPO has not yet been determined, Bloomberg reported.
Earlier this year, Gene Hoffman was appointed as Chia’s CEO and told Bloomberg in January that the startup did not plan to go public in 2023, believing the market would not be “open” to them.
Chia is one of several digital asset companies preparing for public listings.
Kraken co-founder Jesse Powell said his company was gearing up for a potential public listing when he revealed he was stepping down as CEO.
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Following a merger with a special-purpose acquisition company, Bitcoin miner Bitdeer Technologies Holding Co. began trading on the Nasdaq on Friday.
However, crypto-related companies that have gone public have faced various challenges.
Coinbase Global Inc. (NASDAQ: COIN), which received a notice from the SEC in March indicating the regulator’s intention to pursue an enforcement action against the crypto exchange, has experienced a stock price decline of over 70% since its direct listing.
Core Scientific Inc. (OTC: CORZQ), Marathon Digital Holdings Inc. (NASDAQ: MARA), and Riot Platforms Inc. (NASDAQ: RIOT) — the top three publicly traded Bitcoin miners — collectively suffered losses exceeding $1 billion during the second quarter of last year, prompting some miners to resort to stock sales to raise funds.
Chia, headquartered in San Francisco, promotes itself as the creator of a more eco-friendly, less energy-consuming blockchain that relies on hard drives, including recycled ones, for data storage.
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