Spence and the beard of the fortress
Stronghold Digital Mining shares surged 52% on Wednesday’s opening day as investors showed enthusiasm for early crypto-related companies.
The company’s share price, traded on Nasdaq under the ticker symbol SDIG, a Pennsylvania company that mines bitcoins from waste coal, exceeds the expected $ 16 to $ 18 range and is 19 per share. It was a dollar.
The stock price rose to $ 31.90 and then closed at $ 28.90. This brings the company’s market capitalization to approximately $ 1.3 billion, based on a fully diluted number of shares.
The base debuted on Wednesday as Bitcoin hit a record high, reaching nearly $ 67,000. The rally took place the day after the launch of the first Bitcoin-linked exchange-traded fund. The ProShares Bitcoin Strategy ETF is the first of many such funds and is expected to give investors with securities accounts access to Bitcoin in a variety of ways.
Stronghold CEO Greg Beard chose the company to go public through an IPO rather than a special-purpose acquisition company (SPAC) route, which is an increasingly popular way to enter the market in the last few years. He said he did. Beard advertised the credibility of the IPO.
“I think we’re getting more attention from investors because we’re regularly scrutinized by the SEC,” Beard said. The company said it plans to raise about $ 115 million from the proposal.
Stronghold is competing in competitive markets, including companies such as Riot Blockchain, Marathon Digital and Core Scientific. CoreScientific will be listed on Nasdaq this year as part of the SPAC merger.
Mining from waste coal
The United States exploded in the Bitcoin mining scene last year, and cryptocurrency companies across the country are usually looking for ways to compete by finding the cheapest power sources available.
Stronghold co-founder Bill Spence saw the opening when Beijing decided to expel all crypto miners.
Originally from Pennsylvania, Spence has spent the last two decades purifying waste coal in his home state. Earlier this year he decided to pivot to Bitcoin mining and gain some of the market share he was trying to gain.
Pennsylvania has been in the coal mining business since the late 1700s. Until 1975, it was legal to stack coal mining by-products next to the mine mouth. According to Beard, these mountains currently exceed 840, some of which are 200 feet deep and look like “moon landscapes.”
“They are everywhere coal mining was,” Beard said.
The site transports waste coal from these sites to two facilities, where fluidized bed boilers are used to remove toxins. It helps generate electricity and it is used to generate electricity for Bitcoin miners.
“We are recovering and repairing legacy problems from decades of coal mining in Pennsylvania,” says Beard. “Bitcoin mining is using its power most economically today.”
We don’t often report on Bitcoin profits. According to Beard, the company has only mined hundreds of bitcoins so far.
“It’s not enough to brag yet,” he said.
Revenues for the first six months were only $ 7.9 million, up from $ 2.2 million in the year-ago quarter. The company lost $ 3.5 million in the first half of this year.
By owning energy and mining hardware, Stronghold said it could generate electricity at half the industry average price, Beard said.
“We will have a better margin than anyone else,” Beard said. “If we understand that it is the direction of leaders, I think all miners will be drawn to having their own power.”
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Bitcoin Minor Stronghold Digital Mining Debuts on Nasdaq
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