Ikonics Corp (NASDAQ:IKNX) is trading significantly higher after the company announced that it plans to merge with Bitcoin (CYPTO:BTC) mining company, TeraWulf Inc.
What Happened: The two companies announced that they entered into a definitive merger agreement to combine under a new holding company named TeraWulf Inc. The new company will be listed on the Nasdaq and trade under the ticker symbol “WULF.”
Ikonics shareholders will receive $5 in cash and one share in the new company for each share they hold. Shareholders will also receive one contingent value right, which entitles them to 95% of the proceeds from a sale of Ikonics’ imaging business.
TeraWulf is focused on mining Bitcoin with over 90% zero-carbon energy.
“TeraWulf represents an exciting new paradigm for cryptocurrency mining, which is built on a significant strategic advantage to utilize reliable, secure and low-cost sustainable energy sources to support our bitcoin mining activities,” said Paul Prager, chairman and CEO of TeraWulf.
Prager will remain chairman and CEO of the new company.
Price Action: Ikonics is making a new 52-week high during trading today.
At last check Friday, the stock was up 109% at $23.65.
