Stronghold Digital Mining raises IPO target To $127M

by in Cryptocurrency News


American mining company Stronghold Digital Mining announced an increase in its initial public offering (IPO) to $ 127 million.

The firm will place 6,687,305 Class A shares at $ 19. It is planned that the securities will begin trading on the Nasdaq on October 20, 2021, under the ticker SDIG, and the company’s capitalization will be about $ 346 million.

The firm expects that the placement will be closed on October 22. The subscriptions are administered by B. Riley Securities and Cowen, the main underwriters are Tudor, Pickering, Holt & Co with the participation of Compass Point and Northland Capital Markets.

Stronghold also awarded underwriters a 30-day option to buy 1,003,095 shares at the IPO price minus discounts and commissions.

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The company foresees net proceeds of about $ 114.8 million or $ 132.5 million in the event of a buyback of the options offered.

Previously, the company planned to receive from $ 94 million to $ 106 million during the IPO through the placement of 5.9 million shares.

Stronghold uses the funds raised for general corporate objectives, including the purchase of mining equipment and generating assets.

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In its IPO filing, the company indicated that it has a fleet of 3,000 bitcoin miners with a combined hash rate of about 185 PH / s. All equipment is housed at Stronghold’s Scrubgrass Plant, which converts waste coal into electricity.

The firm expects the delivery of pre-ordered 26,150 mining devices and intends to acquire 55,800 more miners after the IPO. As a result, Stronghold expects to bring its hashrate to 8000 PH / s by December 2022.