Stronghold Digital Mining Firm to Raise $100M in Targeted IPO
Stronghold Digital Mining noted that it is planning to list its stocks on the Nasdaq following the IPO and offer them under the ticker ‘SDIG’.
American cryptocurrency mining outfit, Stronghold Digital Mining Inc is set to make its stock market debut through the infamous Initial Public Offering (IPO) route. According to its latest filing with the United States Securities and Exchange Commission (SEC), the company plans to sell as many as 5,882,352 Class A Common Stock at a price of $16.00 and $18.00 per share. The expected proceeds from the IPO are pegged at approximately $100 million.
According to Stronghold, the entire proceeds from the IPO will be used for general corporate purposes, including for acquisitions of miners and power generating assets, and to pay the expenses of this offering. The firm said its exact contribution to general corporate purposes will either increase or decrease depending on the final amount it realized from the IPO based on demand.
The company noted that it is planning to list its stocks on the Nasdaq following the IPO and trade under the ticker symbol ‘SDIG’. Stronghold says it will be employing the services of Underwriters whom it is set to grant a 30-day option to purchase as many as 882,352 additional shares of its stock at the IPO price. This is in addition to the scheduled 5.8 million shares it is offering to the public. B. Riley Securities, Inc. and Cowen will be acting as joint book-running managers, while Tudor, Pickering, Holt & Co. are serving as lead managers.
Stronghold and Its Mining Operation Advantages
Stronghold prides itself as one of the first mining outfits to go public through Initial Public Offering, as against the Special Purpose Acquisition Company (SPAC) and Direct listing routes many are currently leveraging. Beyond this, the firm says it has a competitive advantage compared to its peers as it generates its electricity from waste coal, helping to recycle the energy source to lower its Carbon footprint.
Stronghold Digital Mining says its processes are environmentally friendly, and sustainable, adding that having its own “source of power helps to produce Bitcoin at one of the lowest prices among publicly traded peers”.
“We also believe that owning our own power source makes us a more attractive partner to crypto asset mining equipment purveyors. For example, we have been able to enter into partnerships with crypto asset industry participants, including miner sharing arrangements, because we offered competitive power rates in a mutually beneficial arrangement,” explained teh company.
Stronghold Digital Mining is set to expand its facilities by as much as 900% in the coming year. While its current mining hashrate is pegged at about 185 petahash per second (PH/s) from 3,000 per the filed prospectus, the company says it will increase the figure to 2,500 PH/s from 26,150 miners it is currently expecting from its suppliers. The firm noted that 72% of these miners will be delivered before the end of this year, while the rest will be delivered by next year.
In its bid to reposition itself as a major Bitcoin mining hub, Stronghold also detailed its plans to acquire additional 55,800 miners to take its total hashrate to 8,000 PH/s by December 2022. Power generating acquisitions are bound to be made in the coming years to help power this vast number of miners it is expecting to deploy.
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