Stronghold Digital Mining, an American Bitcoin mining company, will list nearly 6 million shares in the Nasdaq IPO.
Stronghold plans to list 5,882,352 Class A common stocks under the stock code “SDIG” at a price between US$16 and US$18. Based on the average proposed issue price, the IPO is approximately US$100 million.
The Kennedy, Pennsylvania-based company first filed an application with the U.S. Securities and Exchange Commission NASDAQ IPO July. It will provide nearly 900% of funding for capacity expansion in the coming year.The final prospectus has Archive SEC, but it has not yet entered into force.
According to reports, Stronghold plans to become the first cryptocurrency mining company in North America to go public through an actual IPO. Nasdaq. This is different from the popular direct selling and Special Purpose Acquisition Company (SPAC) Avenue.
Stronghold plans to grant underwriters or intermediaries a 30-day option to purchase up to 882,352 additional shares at the IPO price and sell 5.8 million shares to the public.
B. Riley Securities, Inc. and Cowen will serve as joint bookrunners, while Tudor, Pickering, and Holt & Co. will serve as lead managers.
According to the prospectus, Stronghold describes itself as an “emerging growth company” currently operating approximately 3,000 crypto miners with a hash rate of approximately 185 petahash per second (PH/s).
It stated that it has reached an agreement with three suppliers to provide an additional 26,150 mining machines with a total computing power capacity of more than 2,500 PH/s. 72% of the deliveries are scheduled to be delivered this year, and the rest will be delivered in 2022.
Stronghold intends to use the proceeds of the IPO to purchase more hardware because it has planned to add 55,800 miners.
The company owns and operates the “Scrubgrass Plant” in Pennsylvania, which converts waste coal into energy and is therefore recognized as an alternative energy source. The prospectus stated:
“We are committed to generating energy and managing our assets in a sustainable manner, and we believe that we are one of the first vertically integrated crypto asset mining companies focused on operations that are beneficial to the environment.”