FINANCE

Bitcoin Minor Stronghold Digital Mining Nasdaq debuts


Spence and beard of Stronghold

Aaron Kotowski

Shares of Stronghold Digital Mining jumped 52% in their first day of trading on Wednesday, as investors showed enthusiasm for new cryptocurrency-linked companies.

Trading on the Nasdaq under the tick mark “SDIG”, the Pennsylvania company, which digs bitcoin out of waste coal, has a stock price of $ 19 per share, above the expected range of $ 16 to $ 18.

The stock closed at $ 28.90 after climbing as high as $ 31.90. This gives the company a market cap of about 1. 1.3 billion, based on a fully-mixed share calculation.

Stronghold debuted when Bitcoin Fresh reached an all-time high of $ 67,000. The rally came a day after the first Bitcoin-linked exchange-traded fund was launched. ProShare Bitcoin Strategy ETF is expected to be the first of many such funds, making Bitcoin accessible to investors with brokerage accounts in a variety of ways.

Greg Baird, CEO of Stronghold, said the company has opted to go public through an IPO rather than the Special Purpose Acquisition Company (SPAC) route, which has become an increasingly popular way in the market over the past few years. Beard speaks of the credibility that comes with an IPO.

“I think we’re getting a lot more interest from investors, because we’ve been regularly verified by the SEC,” Baird said. The company said it expects to raise about 5 115 million from the offer.

Stronghold is competing in a competitive market that includes companies such as Riot Blockchain, Marathon Digital, and Core Scientific, which will list its stocks on Nasdaq this year as part of SPAC consolidation.

Mine from waste coal

The United States has exploded in the bitcoin mining scene over the past year, and crypto firms across the country are looking for ways to compete, finding cheaper sources of commonly available energy.

When Beijing decided to expel all of its crypto miners, Stronghold co-founder Bill Spence saw an inauguration.

Spence, a resident of Pennsylvania, has spent the past two decades cleaning up waste coal in his home state. He decided to pivot in bitcoin mining earlier this year and try to capture some part of the market.

Pennsylvania has been in the coal mining business since the late 1700s. Until 1975, it was legal to keep coal mining by-products in piles near the mouth of the mine. Beard said there are now more than 840 mounds, some of which are 200-feet deep and look almost like a “lunar landscape”.

“They exist where coal mines existed,” Baird said.

Stronghold brings waste coal from these sites to its two advantages, where it uses liquid bed boilers to remove toxins. It helps generate energy, which is then used to generate electricity for its bitcoin mining.

“We are recovering and remedying a legacy problem from decades of coal mining in Pennsylvania,” Baird said. “Bitcoin mining is the most economical use of that energy today.”

When it comes to bitcoin profits, there is not much to report. Beard says the company has mined only a few hundred bitcoins so far.

“It’s still not enough to brag,” he said.

Revenue for the first six months reached just 7.9 million, up from $ 2.2 million in the same period a year earlier. The company lost $ 3.5 million in the first half of the year.

Beard says that through the ownership of power and mining hardware, the Stronghold industry can produce electricity at half the average price.

“We’ll have better margins than everyone else,” Beard said. “I think all miners will be attracted to getting their own power when they realize that leaders are moving in that direction.”

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