Merger ARIZU

Bitmain-Backed BitFuFu (Finfront Holding Company) Entered into a Definitive Merger Agreement with Arisz Acquisition Corp.

, SPAC Research

Finfront Holding Company, a fast-growing digital asset mining service and world-leading cloud-mining service provider (“BitFuFu”), and Arisz Acquisition Corp. (Nasdaq: ARIZ), a publicly-traded special purpose acquisition company, today announced that they have entered into a definitive business combination agreement that will result in BitFuFu becoming a publicly listed company on NASDAQ under an anticipated ticker symbol “FUFU”. The transaction values the Company at a pro forma enterprise value of approximately $1.5 billion.

BitFuFu is a fast-growing company in the crypto-mining industry and is dedicated to fostering a secure, compliant, and transparent blockchain infrastructure by providing a variety of stable and intelligent hashrate service solutions. BitFuFu offers a one-stop mining solution for miners of all sizes from institutional customers to individual digital asset enthusiasts. It manages mining machines and mines on behalf of its users, allowing users the option of viewing and managing their rigs conveniently in real-time.

BitFufu’s innovative technologies are one of the key drivers for ensuring its leadership position in the industry. Its proprietary Aladdin system handles ultra-large scale hashrate management and dispatching. The system has the maximum capacity to simultaneously connect millions of miners and provide services that resolve critical mining problems arising from scalability, efficiency, authenticity, and securing hash power.

The Transaction values the combined company at an implied fully diluted pro forma enterprise value of approximately $1.5 billion3, representing a 4.6x 2022 projected revenue of approximately $330 million1, and 3.3x projected December 2022 annualized recurring revenue of approximately $465 million1.

The Transaction is expected to provide more than $129 million in net cash proceeds to BitFuFu at closing, after transaction expenses and assuming no redemptions of shares by ARIZ’s existing public stockholders. Existing BitFuFu stockholders are retaining 100% of their equity in the combined company. The proceeds from the Transaction are expected to fund mining equipment purchases and infrastructure build-out as the Company expands its leadership position in the industry.

The BitFuFu and ARIZ Boards of Directors have unanimously approved the proposed merger, which is expected to be completed in the third quarter of 2022, subject to, among other things, regulatory approval, the approval by BitFuFu’s and ARIZ’s stockholders of the proposed merger and satisfaction or waiver of other customary closing conditions. BitFuFu’s management team, led by its founder Leo Lu, will continue to run the Company after the transaction.

Chardan is acting as M&A and Capital Markets advisor to ARIZ. Wilson Sonsini Goodrich & Rosati and Harney Westwood & Riegels are acting as legal counsels to Finfront Holding Company. Loeb & Loeb LLP is acting as a legal counsel to ARIZ.

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