A blockchain services firm, Diginex, is set to undergo a reverse merger from 8i Enterprises and go public in the USA. The firm will be listed on NASDAQ following the demerger anonymous insiders told to Bloomberg on July 10, 2019.
First Blockchain IPO in the U.S.
Diginex Ltd. is set to go public after carrying out a reverse merger, effectively making it the first blockchain services firm to be listed in the country via an IPO. The company has been valued at $276 million, including debts.
Cryptocurrency companies have been skipping IPO’s and pursuing back door listings to gain access to public markets. Considering how young the market is, venture capital still reigns supreme as risk is still high.
Digitex shareholders will reportedly receive 20 million ordinary shares of 8i Enterprises, which are valued at $10 per share. The firm has gone on a hiring spree after bringing in ex-Goldman Sachs VP Will McDonough, who started a brand management company.
Diginex’s moves are based on the assumption that financial institutions and investors, in general, will increase their exposure to blockchain-based digital assets. Despite a significant sell-off in the market, the company is still highly optimistic, as is the rest of the ecosystem due to bitcoin’s recent bull run.
Finding Optimal Funding Method
Crypto firms have been shying away from IPO plans, highlighted by Bitmain’s announcement during the bear market. But in light of BTC picking up traction and more people becoming interested in mining again, Bitmain is mulling a move on their IPO again.
Decentralized projects cannot pursue an IPO, which led to the birth of ICO’s. But companies that run these projects or build other infrastructure typically prefer funding via venture capital, keeping their company private.
Venture capital allows for a greater degree of freedom as well as access to industry contacts that may not have been possible otherwise. As the market matures, other funding options may become favorable.