Stronghold Digital Mining, a Bitcoin mining company based in Pennsylvania, has applied to the US Securities and Exchange Commission (SEC) for a $100 million initial public offering (IPO) .
Stronghold filed its S-1 form on July 27 and plans to list its Class A common stock on the Nasdaq Global Market under the “SDIG” ticker if given the green light by the SEC.
Stronghold was created in 2021 as a vertically integrated Bitcoin mining corporation with a long-term emphasis. In June, the firm announced the completion of two private equity securities offerings totaling $105 million.
Stronghold wants to use the cash for general corporate reasons, including “acquisitions of miners and power generating assets,” according to the new filing, with the company revealing ambitions to dramatically raise 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.”
According to the company, it now operates roughly 1,800 crypto mining machines with a hash rate capability of 85 petahashes per second (PH/s) and more are on the way.
Stronghold has signed “three formal agreements with multiple suppliers” to purchase more than 27,000 mining rigs, with a minimum total hash rate capacity of 2,600 PH/s, according to the company. It aims to purchase 93 percent of the machines in 2021, with the other 7% arriving in 2022.
The company operates “low-cost, environmentally beneficial power generation facilities” and mines Bitcoin by transforming waste coal into energy on a scale similar to “a large-scale” hydropower plant, estimating that each Bitcoin mined destroys 200 tonnes of waste coal.