According to FOX Business, Bitcoin mining company GRIID has secured a partnership with Intel, the world’s largest chipmaker, to mine Bitcoin using energy-efficient ways.
GRIID, based in Ohio, is slated to go public on the New York Stock Exchange via a SPAC merger in the coming weeks, with a valuation of $3.3 billion. The symbol for the stock will be “GRDI.”
Intel Enters Crypto Market With A Bang
On Jan 18, we reported that Intel will demonstrate a new “Bonanza Mine” ASIC, chip designer for ultra-low-voltage and energy-efficient Bitcoin mining, at the upcoming ISSCC conference. GRIID, a crypto-mining business due to go public on the NYSE for an estimated $3.3 billion in the coming days, has struck a long-term contract with Intel for its “BMZ2” mining ASICs, according to Fox Business.
GRIID made the announcement in its S-4 filing, which details its ambitions to build three industrial-scale facilities with a total capacity of 48 megawatts. According to the company’s filing, it has mining ASIC contracts with both Bitmain and MicroBT, but it has also “[…] has signed a binding supply contract with Intel to supply ASICs that will help us accelerate our expansion. GRIID will have access to a major portion of Intel’s future production volumes as part of the initial order, which will be delivered in 2022.”
The chips are marketed as “ultra-low voltage, energy-efficient Bitcoin mining ACIS” by Intel, although little else is known about the product.
Intel trades at $53 per share. Soure: TradingView.
GRIID’s mining is based on carbon-free electricity, which fits Intel’s drive to be more energy-efficient and possibly explain why they chose GRIID over other Bitcoin miners like Marathon and Riot.
The deal is mentioned in several places in the listing:
“On September 8, 2021, GRIID entered to a supply agreement (the “Intel Supply Agreement”) pursuant to which GRIID may purchase Intel-designed BZM2 ASICs. The Intel Supply Agreement is for an initial four-year term and will automatically renew thereafter for one period unless either party provides at least 90 days’ notice prior to the end of the initial four-year term. The Intel Supply Agreement provides GRIID with fixed pricing for the BZM2 ASICs for all orders placed prior to May 2023. In addition, subject to certain conditions, GRIID will be entitled to purchase from Intel at least 25% of all qualified Intel-designed ASICs through approximately May 2025.”
Related article | Kosovo Law Enforcement Seizes Over Three Hundred Crypto Mining Machines
GRIID will be entitled to purchase at least one quarter of all qualified Intel-designed ASICs through roughly May 2025, subject to specific conditions.
The transaction’s financial specifics, as well as the performance of the new chips, were not disclosed in the publicly available copy of the agreement.
Intel’s partnership Is Strategic
Because of environmental concerns, big investors have been hesitant to purchase Bitcoin. Bitcoin mining consumes a lot of energy, which makes it difficult for many investors to include it in their portfolios and meet so-called ESG (environment, social, and governance) objectives.
The decision is likely to give GRIID, a four-year-old firm, a boost, putting it on pace with Bitmain, the world’s largest Bitcoin miner, which held over 75% of the mining market share in 2018.
At the ISSCC conference in February, the chip maker is slated to reveal further information on its future processors created solely for bitcoin mining. The major chipmaker will most likely showcase its new miner at a panel titled “Bonanza Mine: An Ultra-Low-Voltage Energy-Efficient Bitcoin Mining ASIC” in the “highlighted Chip Releases: Digital/ML” track.
The first known customer of Intel’s ASICs for bitcoin mining is GRIID, which is seeking to go public through a merger with a special purpose acquisition company (SPAC). GRIID is expected to be valued at more than $3 billion after the merging process.
Related article | Japan ‘Hopes’ To Be The Global Leader In Bitcoin Adoption
Featured image from Getty images, chart from TradingView.com
