Shares of bitcoin mining company GRIID Infrastructure (GRDI) extended their drop into the second day after the Cincinnati, Ohio-based firm completed its listing on Nasdaq this week following its merger with a special purpose acquisition company (SPAC) Adit EdTech Acquisition Corp.
Shortly after its Nasdaq debut on Monday, GRIID shares were trading at around $7.30, down around 24% against its opening price of $9.66. GRDI closed the day down 43% or $5.47 per share. On Tuesday, the stock fell as much as 17% before paring its earlier losses. GRDI was down about 3% at the time of writing.
The listing comes after the company first announced its intention to go public during the bull market of 2021 when the combined enterprise value of the two companies was $3.3 billion. The miners, considered a proxy for bitcoin as their revenue is mainly based on the digital currency they mine, were hit particularly hard during the recent crypto winter. GRIID delayed its public listing during the bear market and was finally able to go public this year as the digital assets industry came out of the bear market.
The company’s current market cap is around $322 million, based on 65 million shares outstanding as of Dec. 29.
GRIID, founded in 2018, has gone public when the mining industry is about to become even more competitive as the bitcoin halving event is set to take place in April. Miners are expanding and upgrading their fleets to become most efficient as companies with the lowest cost can stay profitable when halving cuts the mining rewards by half.
The company has 68 megawatts (MW) of electrical capacity and operates in Watertown, New York; Limestone, Maynardville and Lenoir City, Tennessee mining facilities. According to its latest filing, GRIID expects to expand its capacity to 436MW by the end of 2024.