Crypto mining is one of the easiest points of entry for an investor looking to get exposure to cryptocurrency. Mining companies are the most plentiful crypto-centric stocks on Wall Street, and they allow one to make an investment in the industry without facing exposure to the volatility of crypto prices themselves. Now, a new crypto-mining stock is joining the fold in the form of Stonghold’s coming SDIG stock IPO (initial public offering). The public offering is not just allowing entry into the crypto space, it’s also representing one of the most energy-conscious mining companies on the market.
Stronghold is a crypto-mining outfit based in Kennerdell, Pennsylvania, a town north of Pittsburgh. Thanks to its location in Western Pennsylvania, a huge hot bed for coal mining, the company can take advantage of a more sustainable way to mine Bitcoin (CCC:BTC-USD). Burning coal creates piles of waste coal, which litter the region. Stronghold powers its mining facilities by utilizing the energy left in these waste coal piles to generate electricity.
This more sustainable method of crypto mining stands in stark contrast to the major mining operations around the world dependent on coal for production. The company is using this as leverage to drive excitement around its business; this is especially attractive as cryptocurrencies emphasize becoming more green.
SDIG Stock IPO: Stronghold to Hit Wall Street Next Week
Stronghold is taking a big next step with an IPO, slated for next week. The company is listing on the Nasdaq, finally seeing its July filing come to fruition. The public offering will see over 5.8 million shares listed, made available under the “SDIG” ticker.
Shares of the SDIG stock IPO are expected to price in between $16 and $18; net proceeds should fall around $89.6 million. This capital raise will help fund a vast expansion of Stronghold’s assets. It currently boasts over 3,000 mining rigs, working around the clock to hash Bitcoin for the company.
The company is already buying over 26,000 additional machines to expand production; the company expects their delivery largely through the end of this year and beginning of 2022. But now, with funds from the IPO, it expects to add an additional jaw-dropping 55,800 machines to its fleet, a 900% increase in capacity. The company is also nearing a close on its purchase of a second power facility to accommodate these miners.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.