IPO - Profile

Stronghold Digital Mining, Inc.

Technology > Computer Software: Programming, Data Processing

SDIG

Summary

Offer Price Offer Size 3-Year Outlook Volatility First Day Turnover
$19.00 6,700,000 Positive High 132.65%

Offering Team

  • Legal counsel
  • Vinson & Elkins L.L.P
  • Auditors
  • Panther Creek Power Operating LLC

Deal Highlights

We are a vertically integrated crypto asset mining company currently focused on mining Bitcoin. We wholly-own and operate the Scrubgrass Plant, a low-cost, environmentally-beneficial coal refuse power generation facility that we have upgraded in Scrubgrass Township, Pennsylvania, and it is recognized as an Alternative Energy System, because coal refuse is classified under Pennsylvania law as a Tier II Alternative Energy Source (equivalent to large-scale hydropower). We are committed to generating our energy and managing our assets sustainably, and we believe that we are one of the first vertically integrated crypto asset mining companies with a focus on environmentally-beneficial operations. Simply put, we employ 21st century crypto mining techniques to remediate the impacts of 19th and 20th century coal mining in some of the most environmentally neglected regions of the United States. In addition to being environmentally-beneficial and sustainable, owning our own source of power helps us to produce Bitcoin at one of the lowest prices among our publicly traded peers. We also believe that owning our own power source makes us a more attractive partner to crypto asset mining equipment purveyors. For example, we have been able to enter into partnerships with crypto asset industry participants, including miner sharing arrangements, because we offered competitive power rates in a mutually beneficial arrangement. We believe other miner manufacturers or suppliers may be more willing to work with us because our vertical integration, strong financial position, and industrial scale make us a dependable partner. We have entered into a definitive agreement to purchase a second coal refuse power generation facility and a non-binding letter of intent to purchase a third coal refuse power generation facility. We intend to leverage these competitive advantages to continue to grow our business through the opportunistic acquisition of additional power generating assets and miners. We currently operate approximately 1,900 crypto asset miners with hash rate capacity of approximately 95 PH/s. Since April 1, 2021, we have entered into definitive agreements with three suppliers to purchase approximately 27,200 additional miners with a total hash capacity equal to over 2,600 PH/s. Of these miners, 68% are scheduled to be delivered in 2021, with the first batch scheduled for delivery in October 2021, 26% are scheduled to be delivered in the first quarter of 2022 and the remaining 6% are scheduled to be delivered during the remainder of 2022. With part of the proceeds of the IPO, we intend to procure approximately 55,800 additional miners, which we anticipate will bring our total hash rate capacity to over 2,100 PH/s by December 2021 and to over 8,000 PH/s by December 2022. We intend to house our miners at the Scrubgrass Plant, the Panther Creek Plant and additional power assets, once of which is the Third Plant that we have under a non-binding letter of intent to purchase. The acquisition of the Third Plant is subject to due diligence and the negotiation of a definitive agreement, and there is no assurance that the acquisition will be completed. We are also strategically pursuing acquisitions of additional power assets.

Deal Tracker

IPO Dates

Filing 18 Oct, 2021

Offer 20 Oct, 2021

Look Ahead

Lock Up Expiry Apr 20, 2022

IPO Terms

Offer Price $19.00
Offer Size 6M

Market Sentiments

Stock Price