Chia has filed with the SEC, for an IPO

Good afternoon my friends. And now the moment has come that we have been waiting for for so long. The Chia team filed an application with the SEC presumably for an IPO.

For those who do not know what an IPO is, let me remind you a little. Each company strives to raise capital for the development of its business. At the initial stage — at the startup stage — it is difficult for her to attract a bank loan or find an “angel” ready to invest in her development. And then the company issues shares that are offered to investors. Everyone who buys a startup share becomes its co-owner.

An Initial Public Offering (IPO) is the first public sale of a company’s shares to an unlimited number of people. During the IPO, the company issues shares and places them on the stock exchange, and any willing investor or investment fund can purchase securities.

Cryptocurrency startup Chia Network Inc. announced on Friday that it has taken another step towards an initial public offering of shares in the United States. The company said it had confidentially submitted a draft registration statement to the Securities and Exchange Commission.

Chia, valued at about $500 million in 2021, said in the announcement that the size and price range of the proposed IPO have not yet been determined.

«We believe that the SEC sincerely wishes the projects to come and register, so here we are», — CEO Gene Hoffman said in a statement. «We take compliance with the law and transparency seriously, and we chose this path because we believe it is the right one.»

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Hoffman, who was appointed CEO of Chia this year, told Bloomberg in January that the startup did not plan to go public in 2023 because he did not believe that the market would be open.

Chia joins other digital asset companies seeking a public offering. Jesse Powell, co-founder of the Kraken cryptocurrency exchange, said his company was preparing for a potential public offering when he announced his resignation as CEO. Bitcoin miner Bitdeer Technologies Holding Co. began trading on Nasdaq on Friday after completing a merger with a special purpose joint stock company.However, crypto-oriented companies that have entered the IPO have faced a number of problems. Coinbase Global Inc., which received a notification from the SEC in March about the regulator’s intention to take action against the cryptocurrency exchange, has faced a decline in the value of its shares by more than 70% since the direct placement. Core Scientific Inc., Marathon Digital Holdings Inc. and Riot Platforms Inc. — the three largest public bitcoin mining companies — suffered cumulative losses of more than $1 billion in the second quarter of last year. Some miners even resorted to selling shares to raise funds.

Chia, based in South San Francisco, California, positions itself as a developer of a more environmentally friendly and less energy-intensive blockchain system based on the use of hard drives, including recycled ones, for data storage.

I believe that there are not so many mega X’s left, the team has been preparing a microclimate for new users for a long time, who will soon enter the game. Which will be able to quickly create rafts thanks to the GPU. plotter.