Cryptomine data center firm Blockfusion has announced plans to go public through a $450 million merger deal with special purpose acquisition company (SPAC) Blue Acquisition Corp.

The deal, which will see Blockfusion trade on the Nasdaq, comes as the company follows a broader industry shift by pivoting from cryptomining towards HPC/AI data centers.

New York-based Blockfusion currently offers around 46MW of Tier I capacity at its Niagara Falls facility, with plans to expand to more than 100MW of Tier III capacity to support AI computing.

“Blockfusion was built to deliver dependable, cost-efficient compute at scale,” said Blockfusion co-founder and CEO Alex Martini-Lo Manto. “We converted a retired coal facility into a clean energy-powered data center and showed we can execute complex infrastructure projects with accuracy and discipline. That capability lines up with what the AI market needs as demand for power and high-density capacity accelerates.”

The rapid growth in demand for AI computing has seen construction spending on US data centers climb 30 percent year-on-year to an all-time high in 2025, according to a Bank of America report.

Blockfusion estimates that the HPC/AI business could generate $128 million in revenue by 2028 and $209 million in 2030.

The merger deal is expected to take place in the first half of 2026, pending approval from Blockfusion and Blue Acquisition shareholders. If it goes through, the combined company will operate as Blockfusion Data Centers Inc.

Blue Acquisition Corp completed its own $201 million initial public offering in June 2025, listing on the Nasdaq. It then set about seeking the most suitable private business to take public.

“Following our IPO, and through the extensive network within the Blue Acquisition team, we evaluated numerous qualified companies throughout the sector. Blockfusion stood out immediately,” said Blue Acquisition Corp CEO Ketan Seth.

“In our view, it represents a compelling opportunity to develop and bring to the public markets a strategically positioned platform transitioning into a high-performance, next-generation AI data center.”

Blockfusion purchased the former coal-burning power plant at 5380 Frontier Avenue in 2019 and converted it to a cryptomine data center, hosting mining rigs for the likes of Bit Digital.

In May 2022, the site suffered a transformer explosion and fire. At the time, the cause was believed to have been faulty equipment owned by the power utility.

Shortly after completing repair work, the company was forced to shut operations at the site after an ordinance change led to a cease and desist order from the City of Niagara Falls. The site was finally granted permission to reopen last month.

Blockfusion has previously announced a partnership with Nano Nuclear Energy to deploy the latter's microreactor technologies at the Niagara site.