In the IPO filing, Stronghold noted that with the fundraising, it will purchase an additional 27,300 crypto miners to expand its operations and increase its hash rate.
Amid the recent crackdown by China on Bitcoin miners, the US is emerging as the next big market. Stronghold Digital Mining, the Pennsylvania-based Bitcoin miner is now willing to raise $100 million through an initial public offering (IPO).
The company filed its S1-form on Tuesday, July 27, with the US Securities and Exchange Commission (SEC). Under the ticker of SDIG, the firm is also willing to list its Class A stock on the Nasdaq exchange.
Stronghold specializes in converting coal mining leftovers like waste coal into power used to mine Bitcoin. Pennsylvania regulators also qualify waste coal as an alternative energy source on par with hydropower. Thus, Stronghold already addresses the issue of carbon footprint and conducts clean energy operations for Bitcoin mining. In its prospectus, the firm noted:
“We are committed to generating our energy and managing our assets sustainably, and we believe that we are one of the first vertically integrated crypto asset mining companies with a focus on environmentally-beneficial operations. Simply put, we employ 21st century crypto mining techniques to remediate the impacts of 19th and 20th century coal mining in some of the most environmentally neglected regions of the United States”.
A Look into Existing Operations of Stronghold Ahead of Its IPO
In the S1-filing with the US SEC, Stronghold said that it operates nearly 1800 crypto asset mining computers. These resources cater to the hash rate capacity of roughly 85 petahash per second (PH/s). Since April 1, 2021, the company has also joined hands with several suppliers to purchase an additional 27,300 crypto miners. Thus, it seeks to push its total hash capacity to 2,600 PH/s.
The filing also notes that Stronghold will expand its operations to additional generation facilities processing waste coal. The firm also noted:
“We intend to house our miners at the Scrubgrass Plant, the Panther Creek Energy Facility (the “Panther Creek Plant”), a coal refuse power generation facility that we have under contract to purchase (subject to customary closing conditions and regulatory approvals), and an additional coal refuse power generation facility (the “Third Plant”) that we have under a letter of intent to purchase”.
Back in June 2021, Stronghold raised a massive $105 million in a funding round backed by family offices. Previously, Stronghold CEO and co-chairman, Greg Beard has also worked for the billion-dollar alternative investment management firm Apollo Global Management.
The IPO market in the US remains pretty much heated for this year. As CoinSpeaker reported, the American IPO market will end up this year at a record milestone. On the other hand, with Coinbase going public early in April 2021 more firms in the crypto space are coming forward to launch an IPO.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.