Stronghold Digital Mining raises IPO target to $127 million

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

According to пресс-релизу, the firm will offer 6,687,305 Class A shares at $19 per share. It is planned that the papers will begin trading on Nasdaq on October 20, 2021 under the ticker SDIG, with the company\’s market capitalization expected to be about $346 million.

October 20, 2021 | 18:12Update:

After trading began at 18:00 (MSK), Stronghold shares jumped to $27.

The underwriters are B. Riley Securities and Cowen, with Tudor, Pickering, Holt & Co as the lead underwriters, with participation from Compass Point and Northland Capital Markets.

Stronghold also granted the underwriters a 30-day option to purchase 1,003,095 shares at the IPO price, net of discounts and commissions.

The company expects net revenue to be around $114.8 million, or $132.5 million if the option is exercised.

Earlier to raise between $94 million and $106 million through the sale of 5.9 million shares.

Stronghold uses the funds for general corporate purposes, including the acquisition of mining equipment and generating assets.

In the заявке for the IPO, the company stated that it operates a fleet of 3,000 BTC miners with a combined hash rate of about 185 PH/s. All equipment is deployed at Stronghold\’s Scrubgrass Plant facility, which converts coal waste into energy.

The firm expects delivery of 26,150 pre-ordered mining devices, and after the IPO it plans to buy another 55,800 miners. As a result, by December 2022, Stronghold expects to achieve a hash rate of 8,000 PH/s.

Earlier in June 2021, the company raised $105 million through a private placement of securities.

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