Little Fish Acquisition Eyes Quebec-Based Bitcoin Miner Sequoia Digital Corp.
Little Fish Acquisition I Corp., a Capital Pool Company (CPC) listed on the TSX Venture Exchange, has proposed acquiring Sequoia Digital Corp., a British Columbia-based Bitcoin mining company. The CPC has identified a target for its qualifying transaction and plans to acquire all outstanding securities of Sequoia through a share exchange. Under the proposed arrangement, Little Fish would issue approximately 37.16 million common shares valued at $0.20 per share, implying a total purchase price of roughly $7.4 million.
Sequoia generates revenue by earning Bitcoin through block rewards and transaction fees. The company has indicated plans to diversify into additional cryptocurrencies. Sequoia's audited financials for the year ended April 30, 2024 showed relatively modest scale for a bitcoin mining operation, with revenue of CAD$413,318, a net loss of $234,179, total Assets of $326,409, and total liabilities of only $19,714.
The proposed transaction remains subject to Shareholder approval, regulatory review, and standard closing conditions. There is no guarantee it will be completed on the terms currently proposed or at all. Investors should weigh the inherent risks of Bitcoin mining as a business model, including exposure to Bitcoin price volatility, rising network difficulty that can compress mining Economics over time, and significant electricity cost sensitivity.