On Monday, nuclear company Deep Fission revealed it has become publicly traded through a reverse merger, securing $30 million in the process.
No, this isn’t 2021.
The company plans to construct compact, cylindrical nuclear reactors and install them one mile underground, inside 30-inch-wide boreholes. By placing reactors below the surface, Deep Fission aims to address longstanding issues with traditional reactors, such as meltdown risks and vulnerability to attacks.
Deep Fission's reactors, each producing 15 megawatts, use pressurized water for cooling, a technique commonly utilized in nuclear submarines and numerous existing plants.
Earlier this year, Deep Fission signed an agreement with data center builder Endeavor to develop 2 gigawatts’ worth of subterranean reactors.
As recently as April, the company had been working to secure $15 million in seed funding. In August, Deep Fission and nine other startups were chosen for the Department of Energy’s Reactor Pilot Program, which simplifies the permitting process.
The reverse merger with Surfside Acquisition Inc., a four-year-old firm, set the offering price at $3 per share—lower than the $10 typically aimed for in SPAC deals. The combined company will keep the Deep Fission name; while its shares have not started trading yet, it plans to list on the OTCQB.
Factors such as the SPAC's share price, choice of market, and timing indicate that Deep Fission was unable to attract additional investment from either new or previous backers, who initially funded the company with a $4 million investment last year.
While the merger gives Deep Fission more financial breathing room than the unsuccessful seed round would have, it also introduces SEC reporting obligations for what remains a relatively small player in a costly industry. The company’s goal is to launch its first reactor by July 2026.
