The American Bitcoin (BTC) miner company Stronghold Digital Mining with a focus on the use of sustainable energy sources expects to raise $100 million following the results of the Initial Public Offering (IPO) on Nasdaq. The application for the U.S. Securities and Exchange Commission (SEC) contained such data.
Stronghold plans to list 5.9 million Class A common stock shares. In the price range of $16-$18 under the SDIG ticker. Underwriters will have a 30-day option to purchase an additional 882,000 shares of their stock at the IPO price. Thus, the organizer of the placement is Tudor, Pickering, Holt & Co. The funds will be used to purchase ASIC devices and energy-generating assets.
Stronghold’s equipment fleet includes 3,000 miners with a hashrate of 185 PH/s. In addition, the firm plans to bring the latter figure to 2100 PH/s; by December 2021 and to 8000 PH/s by the end of next year.
Energy used for Bitcoin mining
Stronghold Digital Mining converts coal waste into energy used to mine Bitcoin.
The state of Pennsylvania, where the company is based, has assigned this energy carrier a green status on a par with hydropower.
Moreover, the company plans to sell the extracted cryptocurrencies only to cover operating costs and capital investments. Coinbase Global carried out coin storage. With the proceeds of the IPO, Stronghold plans to buy even more hardware, with an additional 55,800 miners planned.
The results of two tranches of securities
Earlier, the mining company raised $105 million based on the results of two tranches 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.
Recall that Gryphon Digital Mining focused on “green” mining, announced its entry into the stock exchange through a reverse merger with the data management provider Sphere 3D.