BTC mining company Stronghold Digital Mining has filed for a $100 million initial public offering (IPO) with the United States Securities and Exchange Commission in order to fund a massive expansion in its operations.
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Based in Pennsylvania, the sustainability-oriented mining firm has filed for a $100 million initial public offering (IPO) with the United States Securities and Exchange Commission (SEC). Stronghold filed its S-1 form on July 27 and if given the go-ahead, it intends to list its Class A common stock on the Nasdaq Global Market under the “SDIG” ticker.
Founded in 2021, the company is focused on sustainability and has vertically integrated Bitcoin mining operations. In June, the firm completed two private equity securities raises worth $105 million, as reported by Cointelegraph. According to the filing, the firm will use the funds for general purpose such as “acquisitions of miners and power generating assets”, with the firm outlining plans to increase its total hashing power 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 currently operates around 1,800 crypto mining rigs with an approximate hash rate capacity of 85 petahashes per second (PH/s). Stronghold has more miners en route to expand its operations. It has entered into “three definitive agreements with multiple suppliers” to acquire the more than 27,000 machines, calculated to have a minimum hashing capacity of 2,600 PH/s.
Around 93% of the machines should be acquired in 2021, and the remaining 7% will be delivered by 2022.
Per the firm’s statements, they operate what is described as “low-cost, environmentally beneficial power generations facilities,” mining Bitcoin by converting waste coal into energy on a scale equal to “a large-scale” hydropower plant.
Stronghold estimates that for every Bitcoin it mines, 200 tonnes of waste coal is destroyed.
The Bitcoin network recovers after China Crackdown
Bitcoin’s difficulty level witnessed the largest decline in history (27.9%) following China’s crackdown on the mining ecosystem.
At its lowest point, the BTC hash rate hit 85 EH/s, but has since trended higher as miner operations shifted out of China to greener pastures. On the surface, China’s knee-jerk reaction against bitcoin is allegedly aimed to seek “financial stability and social order”, but the crackdown coincides with the slow release of the regime’s own central bank digital currency (CBDC).
Related reading: Central Bank Digital Currencies: What you need to know
China’s crackdown on crypto is not new, rather it’s a reiteration of prior takes on alleged ‘risks’ of digital currency to economic stability. The network hash rate has recovered to 116 EH/s as the pioneering crypto exchanges hands close to $40,000 at the time of publishing.
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