Bitcoin Miner With Celsius Assets Delays IPO After Losing CEO and Auditor

Bitcoin mining company Ionic Digital, which acquired the mining assets of bankrupt crypto lender Celsius, has postponed plans to go public after losing its CEO and auditor.

Former CEO Matt Prusak told the company in July that he would not remain with the company after his employment ends on Aug. 14, the miner said in a statement on Thursday. Ionic has begun searching for a new CEO and has appointed recently hired CFO John Penver as interim boss.

Penver was hired in July to lead the company’s IPO plan. Ionic said it still plans to hold an initial public offering despite the leadership change and is “confident” Penver can lead the company to that goal.

How long it will take is a separate issue.

Ionic also said that its auditor, RSM US, has severed ties with the miner, citing the accounting firm’s strategic decision to cease providing services to cryptocurrency-related firms.

“RSM’s decision was not the result of any disagreement with the Company regarding accounting principles, practices, financial statement disclosures or audit scope or procedure,” Ionic said in a statement, adding that it was making good progress in finding a replacement.

Ionic emerged from stealth earlier this year. At the time, the miner said it would acquire all of Celsius’ mining assets as part of the bankrupt lender’s Chapter 11 exit and go public within 12 months.

The abandonment by RSM threw a wrench into the works. “The temporary absence of an auditor prevented the Company from updating its SEC filings, which delayed Ionic Digital’s efforts to become a public reporting company,” the statement added, without giving a revised timeline.

News of the delay comes at a time when the mining industry has become more competitive following the recent Bitcoin halving, which cut the block rewards regularly paid to miners in half.

The availability of spot bitcoin exchange-traded funds (ETFs) has also deterred many investors from the mining sector and closed some doors to capital for miners, putting pressure on some companies trying to take their companies public.

Most recently, Bitcoin financial services firm Swan Bitcoin, which was planning to go public, canceled its IPO, shut down its hosted mining business, and reduced staff across various units, citing declining revenues.

Read more: Swan Abandons Bitcoin IPO Plan, Cuts Staff, Will Shut Down Managed Mining Unit