Bitcoin-Focused Stronghold Digital Mining Files For $100M IPO
While the company is focused on bitcoin, it may utilize its miners for other crypto assets depending on market conditions.
Greg Beard, CEO and co-chairman of Stronghold
key takeaways
- The company currently operates about 3,000 crypto-asset mining computers with hashrate capacity of about 100 petahash
- In late June, the company fundraised $105 million from two private placements of equity securities and investors were granted registration rights that require a future public listing
Stronghold Digital Mining, a digital asset mining company powered by alternative energy, filed an S-1 form for an initial public offering with the US Securities and Exchange Commission on Tuesday.
The company plans to raise up to $100 million and list its Class A common stock on the Nasdaq Global Market under the ticker $SDIG. The filing did not disclose the price per share.
Stronghold declined to comment directly about the S1-form or IPO, a spokesperson told Blockworks via email.
“Our current focus is on mining bitcoin, which we may convert to USD to the extent necessary to fund our development,” the company said in the filing. While the company is focused on bitcoin, it said it may utilize its miners for other crypto assets depending on market conditions.
Stronghold uses waste coal material to power crypto mining equipment using specialized technology at the company’s power generation facility, the Scrubgrass Generating Plant, based in Venango County, Pa.
In late June, the company fundraised $105 million from two private placements of equity securities and investors were granted registration rights that require a future public listing, it said. Investors include MG Capital, a number of family offices and Greg Beard, the company’s co-chairman and CEO, Blockworks previously reported.
Stronghold currently operates about 3,000 crypto-asset mining computers with hashrate capacity of about 100 petahash. As of April 1, the company entered into definitive agreements with suppliers to purchase an additional 27,300 miners for a total hash capacity equal to over 2,600 petahash.
About 92% of those miners are scheduled to be delivered in 2021 and it anticipates its total hashrate capacity to be approximately 3,000 petahash by the end of the year. The remaining 8% of miners will be delivered throughout 2022, and will increase the petahash 76.67% to 5,300 petahash year-on-year by December 2022, it said.
