Stronghold Digital, a Bitcoin mining company, is planning an initial public offering (IPO) worth between $94 million and $104 million, according to a filing with the Securities and Exchange Commission (SEC).
According to the filing document, Stronghold is offering 5,882,352 shares of Class A common stock, which will be listed on the Nasdaq under the ticker “SDIG” and will have an initial public offering price of $16.00 to $18.00 per share.
The net proceeds of the firm’s IPO are estimated to be $89.6 million, assuming a share price of $17.00.
IPO of Stronghold
Stronghold’s SEC filing outlines the company’s future plans.
Stronghold had approximately 3,000 “crypto asset mining computers,” or “miners,” running at the time of the filing. In addition, the company has entered into agreements with three suppliers to purchase an additional 26,150 miners, with 72 percent of them expected to be delivered this year.
A further 21% of miners are expected to be delivered in the first quarter of 2022, with the remaining 6% scheduled for “the remainder” of next year.
Stronghold also stated that a portion of the proceeds from this offering will be used to hire approximately 55,800 additional miners.
Stronghold describes its Scrubgrass, Pennsylvania mining facility as a “environmentally-beneficial coal refuse power station” in its SEC filing, but there is conflicting evidence about how waste coal affects the environment.
Coal waste and Bitcoin
Mining Bitcoin necessitates massive amounts of electricity, often at levels greater than those required by the majority of the world’s countries.
Because of its reliance on electricity, Bitcoin mining has been chastised for its environmental impact, with particular emphasis placed on mining that employs carbon-intensive fossil fuels.
Waste coal, also known as coal refuse, is the byproduct of traditional coal mining.
Stronghold Digital CEO Greg Beard previously stated that the company’s environmental strategy allows for Bitcoin mining while making a “transformational contribution to the environment.”
Stronghold Digital co-chairman Bill Spence previously stated that the company uses “21st-century crypto mining techniques to remediate the impacts of 19th or 20th-century coal mining in some of the most environmentally neglected regions of the United States.”
Furthermore, according to a presentation previously shared with Decrypt by the Western Pennsylvania Coalition for Abandoned Mine Reclamation, coal refuse “can now be economically burned due to advanced technology.”
However, more efficient burning does not always translate into environmental benefits. Burning waste coal still emits toxins into the environment, with the Energy Justice Network estimating that 85 tons of toxic waste ash are produced for every 100 tons of coal waste burned.