Why Ikonics Stock Is Surging Today

Ikonics Corp IKNX is trading significantly higher after the company announced that it plans to merge with Bitcoin 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.