Bitcoin price, stock markets dance shocks like never before
Bitcoin price's movements are now mirroring those of US stock markets to an unprecedented degree. A 40-day correlation coefficient for the digital token and the tech-heavy Nasdaq 100 has reached almost 0.66 -- the most in data compiled by Bloomberg since 2010 -- while a similar correlation with the S&P 500 is at a record too. That setup has seen the largest cryptocurrency and U.S. shares slump, but equally a turnaround on Wall Street could lift the bruised digital token.
(Bloomberg) FinFront Holding Co., a crypto mining platform backed by Bitmain Technologies Ltd., is planning to list in the U.S. through a merger with blank-check firm Arisz Acquisition Corp.
The SPAC deal between Arisz and FinFront, also known as Bitfufu, involves additional private investment in public equity, or PIPE, funding of $70 million and implies an enterprise value of $1.5 billion for the business, the company said in a statement Tuesday. The combined firm is expected to begin trading in the third quarter.
Bitfufu hosts mining machines in data centers run by third parties and rent out the computing power to clients, not unlike Amazon Web Services or Microsoft Azure in the cloud business. Even as scrutiny from governments including the U.S., Russia and China intensifies, the company forecasts revenue this year to surge to $330 million from anticipated 2021 sales of $100 million.
“Our advantage is that we can get access to high-quality mining farms globally, and the partnership with Bitmain allows us to take the lead in expanding capacity and maintain a high growth,” Bitfufu founder and Chief Executive Officer Leo Lu said in an interview.
It’s the latest crypto firm to seek a U.S. listing via SPAC, joining the likes of Bitdeer Technologies Holding Co.
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