- On Wednesday, Stronghold Digital Mining’s initial public offering (IPO) surged as much as 68 percent.
- Company is valued at over $2 billion and priced its IPO beyond its projected range at $19 per share.
- Pennsylvania company, which mines bitcoin from waste coal and trades on the Nasdaq under the ticker code “SDIG,” set a $19 per share price for its shares.
On Wednesday, Stronghold Digital Mining‘s initial public offering (IPO) rose as much as 68 percent, as bitcoin hit a new all-time high of over $67,000. The surge occurred just one day after the first bitcoin-linked exchange-traded fund was launched. The ProShares Bitcoin Strategy ETF is intended to be the first of many similar funds, allowing investors with a brokerage account to invest in bitcoin in a number of ways.
Stronghold’s CEO, Greg Beard, explained that the business opted to go public through an IPO rather than acquiring a special purpose acquisition company (SPAC), which has become a popular option to enter the market in recent years. Beard emphasised the legitimacy that comes with an initial public offering.
“I think we’re getting a lot more interest from investors, because we have been vetted by the SEC the regular way” Beard said. According to the company, the offering is anticipated to garner approximately $115 million.
Following a restructure, the bitcoin miner was formed in 2021, is vertically integrated, and now employs about 2,000 mining machines fueled by alternative energy. According to the company’s S-1 filing, it made $8 million in sales in the first half of the year.
Stronghold Digital Mining gets a lot of its crypto mining electricity from coal waste dumps in Pennsylvania, as per its website. The firm burns heaps of coal waste left over from Pennsylvania’s heritage coal-mining sector in an emissions-controlled manner, helping to rehabilitate contaminated land, rivers, and air.
“We are reclaiming and remediating a legacy problem from decades of coal mining in Pennsylvania,” Beard said. “Bitcoin mining is the most economic use of that power today,” he added further.
Stronghold’s 6.7 million shares were in high demand, allowing it to expand its offering and price it at $19 per share, beyond its previously projected range of $16 to $18. The stock reached a high of $31.90, giving it a market worth of almost $1 billion.
Stronghold’s IPO comes amid an ongoing investor rush for cryptocurrency exposure. ProShares debuted their bitcoin futures ETF on Tuesday, which was the second-largest debut for an ETF in terms of trading volume.
The IPO brought in $130 million, according to Stronghold. The stock is known as “SDIG” on the Nasdaq, The Pennsylvania company, which mines bitcoin from scrap coal, set its stock price at $19 per share, which was more than the expected range of $16 to $18.
After reaching a high of $31.90, the stock ended the day at $28.90. Based on a fully diluted share count, the company has a market worth of around $1.3 billion.