Two years to wait – The merger of Singapore-based bitcoin (BTC) mining firm Bitdeer with special-purpose acquisition firm Blue Safari Group Acquisition Corp may wait for the bulls to return to the markets. The crypto winter seems to be cooling some enthusiasm in the sector.
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From one report to another: the Bitdeer – Blue Safari merger is dragging its feet
The timing needs to be reviewed, and extensions are necessary. In November of last year, Bitdeer announced the conclusion of a merger agreement with Blue Safari.
Following this operation, Bitdeer should be renamed Bitdeer Technologies Group, and be listed on Nasdaq under the ticker BSGA. However, the realization of this merger has known many reportsand could wait for the return of good weather on the markets.
According to a November 2 announcement to the SEC, Blue Safari may hold an extraordinary general meeting of shareholders before the end of the year, to decide on the extension of the deadline of the agreement with Bitdeer.
Blue Safari had already extended this deadline twice this year. The merger was supposed to be completed by June 14, but the company later pushed that date back to September 14 and then to December 14 of this year.
Crypto winter: Bitcoin mining catches a cold
At the next general meeting, the shareholders of Blue Safari could give the company the authorization to postpone again up to four times, the deadline of the agreement. This would take until December 2023.
If the number of votes to allow such postponements proves to be insufficient, the shareholders may allow the holding of one or more meetings at a later date or dates. In order to once again solicit their vote on this extension of time.
Currently, the completion of this merger could come up against a lack of investor appetite vis-à-vis crypto mining. Bear markets have hurt miners’ finances. The fall in the price of cryptocurrencies like Bitcoin has been accompanied by a significant increase in the price of electricity.
Despite these difficulties faced by miners who have not unplugged their machines recently, Bitcoin mining difficulty has skyrocketed. Competition has therefore not diminished, and the relatively large amount of investments to be made to remain competitive could dissuade investors from plunging into the sector, in full bear market.
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