Phew indeed. They raised the last round for mining and clearly got destroyed by the market. This was definitely a down round.
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They raised money via debt, not an equity sale, right?
There’s no valuation when raising via debt, just an interest payment due.
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Convertible notes are typically used to raise money quickly and also carry caps and discounts to the next funding round.
The last priced round was all for mining; basically every miner has gone belly-up over the last 12 months. I suspect this was bridge financing to cover cash after losses on mining hardware investments.
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You sure? They are pitching it like it was due to 3Xing their revenue ... which I guess for a low margin business like mining might not mean much.
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