By Dhirendra Tripathi
Investing.com – Ikonics (NASDAQ:IKNX) more than doubled during Friday’s session as the company agreed to combine with bitcoin miner TeraWulf under a new holding company.
The shares were later up 90.5% at $21.53 after hitting a high of $25.
The new entity will be called Terawulf and will be listed on the Nasdaq.
Ikonics investors will receive $5 in cash and one share of the new entity for every share they hold, coming to hold 2% stake in the combined company’s common stock once the deal is complete.
Ikonics, a 65-year-old company with imaging solutions as its mainstay, will become a subsidiary of the new company, and be positioned for sale.
TeraWulf will provide domestically produced bitcoin powered by more than 90% zero-carbon energy with a goal of utilizing 100% zero-carbon energy.
It expects to have 50 MW of mining capacity online this year, and consistent with its buildout plan, sees 800 MW mining capacity deployed by 2025.
Bitcoin mining is an energy intensive process because of the amount of power used by the computers. Bitcoin has a carbon footprint comparable to New Zealand’s, producing 36.95 megatons of CO2 annually, according to Digiconomist.