Stronghold Bitcoin Mining Filed For $100M IPO

Stronghold Digital Mining, a Bitcoin mining company based in Pennsylvania, has submitted a $100 million initial public offering to the US Securities and Exchange Commission (SEC). The company submitted Form S1 on July 27. When the US Securities and Exchange Commission approves it; the company will list its Class A common stock on the Nasdaq Global Market under the ticker symbol “SDIG”. Established in 2021, Stronghold is a vertically integrated, sustainable development-focused Bitcoin mining company.

In June this year, it completed two private equity investments of US$105 million. According to the new document, Stronghold will make use of these funds for general corporate purposes like “acquisitions of miners and power generating assets”. The company outlines plans to significantly increase its overall hash rate capacity. The firm said, “With part of the proceeds of this offering, we intend to procure an additional 27,900 miners, which we anticipate will bring our total hash rate capacity to approximately 3,000 PH/s by December 2021 and to over 5,300 PH/s by December 2022.”

Stronghold Also Says

The company said that at this point, it owns and operates approximately 1,800 cryptocurrency mining machines. Also, it has an estimated hash rate of 85 petaheshes per second (PH/s). Still, there are more machines that the company will soon bring to work. The digital mining firm, Stronghold has also entered into “three definitive agreements with multiple suppliers’ so that it can purchase more than 27,000 mining machines. All these machines combined will have a minimum total hash rate capacity of 2,600 PH/s.

The company is expecting that it will have 93% of its machines by the end of 2021 and they will get the rest 7% in 2022. The company operates a so-called “low-cost, green power plant” and mines bitcoin by converting surplus coal into energy. The scale is equivalent to a “large hydroelectric power plant”. The company estimates that for every bitcoin that the company mines, it destroys 200 tonnes of waste coal.

The Venango County’s Scrubgrass Generation Plant is the company’s first power generation facility. And its power generation practices allow it to reclaim large tracts of land. These lands were damaged by waste charcoal acid drainage (AMD). Stronghold later stated in the filing that it will be placing some of its new mining machines at the existing facilities itself and also in the two new plants that it is currently working to possess. The first is Panther Creek Energy Facility. It is a coal-fired power generation facility under a sales contract while the second is an unnamed facility. It uses the same coal processing method as Stronghold has under a letter of intent to purchase.

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