Stronghold, a US Bitcoin miner, has filed for a $100 million IPO to fund massive expansion.

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Stronghold Digital Mining, a vertically integrated and sustainably focused Bitcoin mining company, has filed for a $100 million initial public offering with the US Securities and Exchange Commission.

Stronghold Digital Mining, based in Pennsylvania, has filed for a $100 million initial public offering (IPO) with the US Securities and Exchange Commission (SEC).

The firm filed its S-1 form on July 27 and if given the green light by the SEC, Stronghold intends to list its Class A common stock on the Nasdaq Global Market under the “SDIG” ticker.

Stronghold, founded in 2021, is a vertically integrated Bitcoin mining company with a long-term focus. Cointelegraph reported in June that the firm had completed two private equity securities raises totalling $105 million.

According to the new filing, Stronghold will use the funds for general corporate purposes such as “acquisitions of miners and power generating assets,” with the company stating that it intends to significantly increase its total hash rate capacity:

“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.”

The company stated that it currently operates approximately 1,800 crypto mining machines with a hash rate capacity of 85 petahashes per second (PH/s) and that more machines are on the way.

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Stronghold has entered into “three definitive agreements with multiple suppliers” to purchase the more than 27,000 mining machines, which will have a minimum total hash rate capacity of 2,600 PH/s, according to the company. It expects to acquire 93 percent of the machines in 2021 and deliver the remaining 7 percent in 2022.

The firm operates what they describe as “low-cost, environmentally beneficial power generation facilities,” and mines Bitcoin by converting waste coal into energy on a scale equivalent to “a large-scale” hydropower plant, and estimates that for every Bitcoin it mines, 200 tonnes of waste coal is destroyed.

The Scrubgrass Generation Plant in Venango County is the company’s first power generation facility, and the company’s power generation processes allow it to rehabilitate large areas of land that have been devastated by waste coal acid drainage (AMD).

Stronghold also stated in the filing that the new mining machines will be housed at its current facility as well as two new plants that it is working to acquire.

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The first is the “Panther Creek Energy Facility,” a coal refuse power generation facility under contract to purchase, and the second is an unnamed facility that employs the same coal recycling methods as Stronghold, which is under contract to purchase.

 

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