Nasdaq-Listed Beverage Company May Merge with US-based Bitcoin Miner

What are these companies? 

Innovation Beverage Group (IBG), based in Sydney and listed on the Nasdaq stock exchange, has traditionally engaged in producing and marketing a portfolio of 13 alcoholic and non-alcoholic brands in the US and Australia, including “Australian Bitters,” “BITTERTALES,” and “Twisted Shaker.”

BlockFuel Energy, on the other hand, has shifted from oil and gas development in the Mid-West to Bitcoin mining in Texas. It converts stranded natural gas into electricity, which then powers its Bitcoin mining operations, according to the company’s website.

“This isn’t just innovative – it’s a game-changer! We’re turning wasted resources in valuable assets,” the company noted. It also says it uses this electricity to power data centres across North America.

BlockFuel does not publicly disclose the size of its mining operations, nor that of the power it provides to data centres.

The deal

While the union is currently set out in a non-binding letter of intent, the two firms have already identified management changes, according to a 23 Sept statement.

Upon closing of the deal, Daniel Lanskey, the current President and CEO of BlockFuel and a Director of IBG, will be appointed as Chairman and CEO of IBG. The current Chairman and CEO will be appointed as President of the “newly formed Australian beverage subsidiary,” according to the statement.

BlockFuel has signed on New York-based investment bank Needham & Company for the merger.

The resulting entity is expected to have an equity valuation of US$220 million to $343 million. Shareholders of IBG will own 10 percent of the resulting entity, according to the statement, implying a for IBG in range of US$22 million to $34.3 million.

New age of crypto mining

“They are expanding an age-old oil and gas mining industry to the new digital age of crypto mining, and we are delighted to partner with them,” said Sahil Beri, current CEO and Chairman of IBG.

“Joining forces with IBG is an exciting step forward for our team and our technology. The combined company will bring together our unique technology for turning natural gas at its source, including stranded or flared gas, into a potent resource with access to public markets as we aim to capture significant opportunities in both cleaner energy and digital assets,” Daniel Lanskey added.

Joining the bandwagon

The potential merger comes amid a flurry of publicly listed companies entering the crypto sphere – even those whose business models have nothing to do with crypto. From EV manufacturers to hotel managers, companies across the globe are stockpiling crypto or buying up mining equipment to join in on the trend. While digital asset treasuries or DATs – companies employing the strategy pioneered by Michael Saylor’s Strategy (previously MicroStrategy) – began with a focus on amassing Bitcoin, companies are now moving into other currencies, such as Ether (ETH) and Solana (SOL).