AMSTERDAM - Bitfury Group, a global blockchain technology firm, announced today the approved distribution of approximately 126 million common shares of Cipher Mining Inc. (NASDAQ:CIFR), a bitcoin mining data center company.
The non-dilutive distribution aligns with Bitfury's strategic plan to diversify its shareholder base and reduce its ownership concentration in Cipher.
The distribution involves approximately 107 million shares to Bitfury's long-term shareholders, including about 50 million to V3 Holding Limited, owned by Bitfury's CEO, and 57 million to about 50 other shareholders.
Additionally, around 18.5 million shares are earmarked for Bitfury's employees, contractors, and advisors. This move will reduce Bitfury's stake in Cipher to roughly 50 million shares.
Prior to the distribution, Bitfury held a 68.4% stake in Cipher, which will decrease to 19.5% post-distribution. V3 Holding Limited's direct ownership will rise to 19.6%, expected to represent about 46% of Cipher's outstanding shares when including Bitfury's retained shares, then reducing to approximately 39% after the employee allocation.
The pro rata share distribution is set to commence today and is anticipated to be largely completed in the coming weeks. The share allocation for Bitfury's employees and associates is expected to conclude in the next few months.
Val Vavilov, CEO of Bitfury, expressed his belief that this strategic move would benefit both Bitfury and Cipher shareholders. Tyler Page, CEO of Cipher, also welcomed the changes, emphasizing the focus on Cipher's fundamental value, growth path, and execution track record.
Bitfury, established in 2011, has evolved from being one of the earliest Bitcoin miners to providing a suite of infrastructure products and services for the Web 3.0 ecosystem. Cipher, on the other hand, is committed to the development and operation of bitcoin mining data centers and aims to be a leader in mining innovation.
The information for this report is based on a press release statement.
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