Pennsylvania-based bitcoin mining company Stronghold has filed for a $100 million IPO with the US Securities and Exchange Commission. The firm plans to list its Class A common stock on the Nasdaq Global Market under the ticker SDIG.
Stronghold filed its S1 form for the IPO on 26th July. According to the filing, Stronghold will use the funds for general corporate purposes. Which includes acquisitions of miners, power generating assets to pay the expenses of this offering.
The firm plans 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.”
Stronghold also said that the firm would sell bitcoin for fiat currency “from time to time”. This would be to cover operating costs based on their internal cash management policy.
Stronghold has entered into “three definitive agreements with multiple suppliers” to purchase more than 27,000 mining machines. The firm estimates that it will have a minimum total hash rate capacity of 2,600 PH/s. It expects to acquire 93% of the machines in 2021 and the remaining 7% in 2022.
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The firm operates low-cost and environmentally beneficial power generation facilities. And mines Bitcoin by converting waste coal into energy on a scale equivalent to “a large-scale” hydropower plant. The company estimates that for every Bitcoin it mines, 200 tonnes of waste coal is destroyed.
Stronghold also stated in the filing that it intends to house the new mining machines at its current facility, as well as at two new plants that it is working to acquire.
