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Stronghold files for $100M IPO to fund massive expansion

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Bitcoin mining farm. IT hardware. Electronic devices with fans. Cryptocurrency miners.

Bitcoin mining company Stronghold Digital Mining is filing an IPO with the SEC. The application amount is $ 100 million. The company’s headquarters in Pennsylvania filed an S-1 application yesterday.

If the SEC approves it, then the company plans to place classic shares (class A) on the Nasdaq market under the appropriate ticker “SDIG”.

It is worth recalling that Stronghold Digital Mining vertically integrated and started operating this year. Last month, the company was able to raise $ 105 million in private equity securities. The investments came from MG Capital and Greg Beard, a former partner of the private equity firm Apollo Global Management.

Stronghold Digital Mining will spend funds to buy miners

As indicated in the documents, the company intends to use finance to purchase miners and assets. The company also plans to significantly increase its overall hashrate capacity.

According to representatives of Stronghold Digital Mining, part of the proceeds they will use to purchase 27,900 miners, which will bring the total hash rate to 3,000 PH / s by the end of this year.

At the moment, there are about 1800 devices for mining cryptocurrency in operation. Agreements also concluded with a number of suppliers for the purchase of 27,000 machines for the extraction of assets. The vast majority of cars will arrive before the end of this year.

The rest will be purchased at the beginning of 2022.

The company uses clean energy to mine cryptocurrencies

The company is trying to emphasize that they use clean energy for the extraction of cryptocurrencies. In particular, the plant for the production of bush grass is the first enterprise of the company, which involved in the restoration of areas previously damaged by the coal industry.

The energy generated by the plant used to mine cryptocurrencies. In addition, the company intends to acquire several more factories and place their mining capacities on them.

The first plant is a facility where electricity will be generated from waste from the coal industry. The second, similar, using modern methods of disposal of coal waste.

Stronghold converts waste from coal mining into energy, which used to mine Bitcoin. Waste from coal mining is classified as an alternative source of energy along with hydropower.

A waste product of Stronghold’s operations is fly ash. It used as a fertilizer to stabilize the soil. Thus, Stronghold can be attributed to the category of “green” miners – companies focused on the extraction of digital assets, whose activities do not harm nature.

“We use our own power generation and adhere to a sustainable asset management model. We believe Stronghold one of the first vertically integrated cryptocurrency mining companies to focus on environmentally friendly practices. Stronghold are using 21st century mining technology to address the negative effects of 19th and 20th century coal mining in some of the most environmentally disadvantaged regions in the United States”, says Stronghold’s IPO filing.

Stronghold Digital Mining expects the SEC to approve their application as they strive to use clean energy for mining while improving the environment by freeing it from coal waste.

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