Home News Stronghold Digital Mining upsized its IPO target to $127M

Stronghold Digital Mining upsized its IPO target to $127M


American Bitcoin (BTC) mining company Stronghold Digital Mining has announced an increase in the volume of the Initial Public Offering (IPO) to $127 million.

According to the press release, the firm will place 6,687,305 Class A shares at a price of $19. The company plans that the securities will begin trading on Nasdaq on October 20, under the SDIG ticker.

Thus, the firm expects that the placement will close on October 22. The subscription administrators are B. Riley Securities and Cowen. Moreover, the main underwriters are Tudor, Pickering, Holt & Co with the participation of Compass Point and Northland Capital Markets.

General corporate purposes

Stronghold also granted the underwriters a 30-day option to purchase 1,003,095 shares at the IPO price minus discounts and commissions.

Stronghold expects to net $114.8M from the offering, or $132.5M if the underwriters exercise their option to buy further shares in full. Previously, the firm planned to receive $100 million during the IPO through the placement of 5.9 million shares.

Stronghold uses the raised funds for general corporate purposes, including for the purchase of mining equipment and generating assets.

The Scrubgrass Plant

The Scrubgrass plant, with Bitcoin mining trailers in back. (Andrew Rush/Post-Gazette)

In the IPO application, the company indicated that it has a fleet of 3,000 Bitcoin miners with a combined hashrate of about 185 PH/s. All the equipment is located at the Scrubgrass Plant owned by Stronghold, which converts coal waste into electricity.

The company expects to deliver pre-ordered 26,150 mining devices, and after the IPO intends to purchase another 55,800 miners. As a result, Stronghold expects to increase its hashrate to 8000 PH/s by December 2022.

Recall that in June 2021, the company raised $105 million through a private placement of securities. The investors were MG Capital, family offices and Greg Beard, a former senior partner at Apollo Global Management. “Our Scrubgrass Plant, combined with the environmental benefits that the region brings. Allows us to mine Bitcoin, as we believe, with some of the lowest costs in the industry,” the company said.

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