Good Works Acquisition Corp. (GWAC) stock climbed in the pre-market following the shareholder approval of business combination with Cipher Mining Technologies Inc. GWAC stock saw a push of 18.46% to reach $11.87 a share at the time of this writing. The stock was also performing well in the pre-market and went up by 2.66% at closing. Let’s dig in to explore more of it.
What’s Happening?
Good Works Acquisition Corp does not operate on its own rather it runs its business by effecting a merger, stock purchase, asset acquisitions, and capital stock exchange. GWAC held a meeting on August 25, 2021, to get an approval vote for its business combination with Cipher Mining Technologies Inc. Out of 87.9% of total votes, 57.0% represented GWAC’s outstanding shares that voted in favor of the business combination. After meeting certain closing conditions, the business combination expects to close today on August 26, 2021. Cipher Mining will begin trading on Nasdaq under the ticker symbol “CIFR” and “CIFRW” respectively.
For those who do not know about Cipher Mining, it is the bitcoin mining company striving to expand its Bitcoin network’s critical infrastructure. The main goal of the company is to become the leader of Bitcoin mining in the United States. Cipher combination with Good Works makes an enterprise value of $2 billion.
Previous News of GWAC stock:
On July 12, 2021, GWAC stock and Cipher Mining filed an amended registration statement Form S-4 with the U.S. Securities and Exchange Commission. The amendment relates to the previously announced acquisition agreement of GWAC stock with Cipher Minings.
The key element in the amended Form S-4 was the Bitfury Top HoldCo B.V agreement. The PIPE financing for the proposed transaction was amended to $50 million which will make the balance sheet of Cipher Mining stronger. Previously Bitfury participated in the PIPE financing in the form of in-kind investment.
Conclusion:
Investors are responding positively to yesterday’s news of GWAC stock. After the closing of the merger, In the past month, GWAC stock gained 0.80%. The stock price is steadily progressing with time as it went up by 2.24% in the last 12 months. From an investment perspective, it is better to do deep fundamental as well as technical analysis before making any decision.
