Stronghold Digital Mining IPO Opens 55.8% Above Expected Stock Price

The bitcoin-friendly mining company’s stock price rose as much as 67.8% following its IPO launch at Nasdaq on Wednesday.

article-image
share

key takeaways

  • “Unlike traditional Bitcoin or crypto miners that seek out cheap power, what we really looked for was a way to enhance and sustain the power business by utilizing cryptocurrency,” William Spence, co-chairman at Stronghold, said in an interview with Blockworks
  • The company has about 3,000 crypto miners and plans to gain an additional 26,150 miners from three suppliers by the end of 2022

Stronghold Digital Mining, a crypto mining company that converts coal waste into energy to mine bitcoin, began trading after its initial public offering (IPO) launched on the Nasdaq Global Market Wednesday.

The company’s IPO priced in 55.8% higher than the anticipated range between $16 and $18 price per share with an opening price of $26.50 under the ticker $SDIG. The bitcoin-friendly mining company’s stock price rose as much as 67.8% following its IPO launch at Nasdaq on Wednesday. The stock was up $10.89, or 57.32%, to $29.89 as of 2:40 pm ET. 

Although this is an IPO, it comes at a time when the US Securities and Exchange Commission has approved the ProShares Bitcoin Strategy ETF (BITO), marking a milestone for the crypto community as it receives the first government-approved Bitcoin ETF in the US. 

As crypto regulation remains a hot topic, Stronghold isn’t worried about regulators, but actually worked with them to launch their IPO, Gregory Beard, co-chairman and CEO of Stronghold said in an interview with Blockworks after the IPO launch. 

The Stronghold Digital Mining Team and their families.

“Crypto mining has not been the focus of the regulators from our perspective. I don’t feel like we have regulatory risk, given that we are not acting with a financial capacity with the general public,” Beard said. 

Beard believes that it’s still early for adoption of bitcoin as a transaction, but it has already been well established as a store of value. The company has about 3,000 crypto miners and plans to gain an additional 26,150 miners from three suppliers by the end of 2022. 

“Regulation has some appeal to us because we do a professional business in a legitimate manner and if anything I feel like we’re helping to legitimize this infant industry,” William Spence, co-chairman at Stronghold, said during the interview with Blockworks. 

The bitcoin-focused mining company is better known for its environmentally-friendly tactics of using waste coal material to power crypto mining equipment through specialized technology at the company’s power generation facility, Blockworks previously reported

“We think that the future of (crypto) mining is integration with power,” Beard said. 

The company is anticipating expansion to two more plants with its acquisition of the Panther Creek Energy Facility back in August, as well as recent plans to acquire another plant. 

“Unlike traditional Bitcoin or crypto miners that seek out cheap power, what we really looked for was a way to enhance and sustain the power business by utilizing cryptocurrency,” William Spence, co-chairman at Stronghold, said during the interview with Blockworks. 

Stronghold will use proceeds from the IPO for general purposes, including acquisitions of miners and power generating assets to mine more bitcoin, a US Securities and Exchange Commission filing from October 13 stated. 

Casey Wagner contributed to the reporting on this story.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member