• bitcoinBitcoin(BTC)$23,230.000.12%
  • ethereumEthereum(ETH)$1,709.16-0.38%
  • tetherTether(USDT)$1.000.01%
  • binancecoinBNB(BNB)$322.480.30%
  • rippleXRP(XRP)$0.3753250.15%
  • cardanoCardano(ADA)$0.520.24%
  • polkadotPolkadot(DOT)$8.781.31%
  • litecoinLitecoin(LTC)$61.620.20%
  • UniswapUniswap(UNI)$8.940.15%
  • Home
  • Coins
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Mining
  • Guides
What's Hot

Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime | by Coinbase | Aug, 2022

August 7, 2022

US ‘past peak inflation’ after Tesla sells 90% of Bitcoin

August 7, 2022

Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts – Bitcoin News

August 7, 2022
Facebook Twitter Instagram
Facebook
Cryptovot Cryptovot
  • Home
  • Coins
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Mining
  • Guides
Cryptovot Cryptovot
Home»Coins»Bitcoin»Crypto Miner Stronghold Digital Soars in Trading Debut
Bitcoin

Crypto Miner Stronghold Digital Soars in Trading Debut

CryptoNewsBy CryptoNewsOctober 20, 2021No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
Share
Facebook Twitter LinkedIn Pinterest Email


Stronghold Digital, the bitcoin mining company that converts coal waste into power for its operations, surged in its first day of trading on Wednesday after raising $127 million in its IPO.

The Pennsylvania-based miner’s IPO was upsized to $19 per share, after previously pricing its IPO at the range of $16 to $18 each. The shares opened up 42% at $27 on Nasdaq under the ticker “SDIG.” They were recently trading up 65% to $31.37.

Stronghold converts “coal refuse,” a material left over from coal mining, into power used to mine bitcoin at its wholly owned Scrubgrass power plant in Pennsylvania. The company is led by Greg Beard, who is the Co-Chairman and Chief Executive Officer and Bill Spence, who is also the Co-Chairman of the company.

Beard was previously a Senior Partner and Head of Natural Resources at private equity firm Apollo Global Management. Spence, on the other hand, brings in 40 years of energy-related experience and is the former owner and operator of Coal Valley/Dark Diamond, a coal refuse power generation facility, from 1993 to 2007.

Environmentally-beneficial operations

With conversation focused around crypto miners’ ability to use more environmentally friendly power sources, Stronghold is billing its ability to turn coal waste into bitcoin power as an advantage over its peers. “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,” the company said in its S1 filing.

The miner is essentially taking an age-old traditional mining problem and turning it into a more environmentally friendly business model of the future by mining bitcoin. “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,” the company said in the filing.

Moreover, Stronghold’s reclamation efforts allow the company to earn tax credits in the form of Coal Refuse Energy and Reclamation Tax Credits, as well as Pennsylvania Tier II Alternative Credits, according to the company’s website.

Lower-cost operations

Stronghold calls itself a “vertically integrated” miner, as its mining rigs are powered by its own power plant, enabling the company to mine bitcoin at a lower cost than its rivals. “Owning our own source of power helps us to produce Bitcoin at one of the lowest prices among our publicly traded peers,” the company said in its filing.

For crypto miners, the biggest operating expense is the cost of power, according to a research note by Jefferies’ analyst Jonathan Petersen. “This is why professional BTC miners spend considerable effort finding locations with the lowest power rates,’’ he wrote.

The net cost of power for Stronghold is about $18 per MWh at its Scrubgrass plant, which is lower than for most other crypto mining companies, according to the company’s data. This helps the company to be profitable when the price of bitcoin is above $3,000, according to a statement Stronghold emailed to CoinDesk. Currently the cryptocurrency is trading at all-time-high of more than $65,000.

Stronghold Digital's Net Cost of Power (Stronghold Digital S-1)

“Given that the price of electricity has a significant impact on the ultimate economics and profitability of crypto asset mining, we believe long-term value is enabled primarily by the reduction of power costs and securing environmentally-beneficial power generation assets,” Stronghold said in its filing.

Growth strategy

The company plans to grow by acquiring additional environmentally-beneficial power generation assets and miners. It is currently in the process of closing on two coal refuse power generation facilities deals, and intends to use the proceeds of the IPO for acquisitions, according to its filings.

The miner currently operates 3,000 miners, with a hashrate capacity of about 185 petahash per second. It plans to bring its total hashrate capacity to more than 2,100 PH/s by December and to more than 8,000 PH/s by December 2022.

Stronghold has entered the public market at a very opportune time, as cryptocurrency mining has been very profitable amid the continued rally in the price of bitcoin. In a recent research,  Wall Street firm D.A. Davidson said that the miners are “literally printing money” in the current market.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
Previous ArticleHow to Do Business as a DAO
Next Article Why a Bitcoin Futures ETF Could Be a Bloody Ride
CryptoNews
  • Website

Related Posts

Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts – Bitcoin News

August 7, 2022

Meta Expands Instagram’s NFT Rollout to 100 Countries — Platform Connects With Third Party Web3 Wallets – Bitcoin News

August 5, 2022

CoinShares losses nearly $3 million due to its TerraUSD holdings

August 4, 2022

Ethereum Eyes Fresh Rally If It Clears This Key Breakout Zone

August 4, 2022

Leave A Reply Cancel Reply

Recent Posts

  • Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime | by Coinbase | Aug, 2022
  • US ‘past peak inflation’ after Tesla sells 90% of Bitcoin
  • Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts – Bitcoin News
  • Bitcoin and Ethereum”Incredibly Oversold” States Bloomberg Analyst: Forbes
  • Sold: 75% of Tesla’s Bitcoin
Don't Miss
Regulation

Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime | by Coinbase | Aug, 2022

By CryptoNewsAugust 7, 20220

Tl;dr: Coinbase and BlackRock to create new access points for institutional crypto adoption by connecting…

US ‘past peak inflation’ after Tesla sells 90% of Bitcoin

August 7, 2022

Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts – Bitcoin News

August 7, 2022

Bitcoin and Ethereum”Incredibly Oversold” States Bloomberg Analyst: Forbes

August 7, 2022
About Us
About Us

CryptoVot is a Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi and digital finance news with analysis, pictures, video and live price updates.

Check out our other website:
Newsvot.com
Funnyvot.com
Healthvot.com
Gamesvot.com
Contact us: contact@vot.media

Facebook
  • Home
  • PRIVACY POLICY & CCPA
  • Do not sell my personal information
  • Opt out / Unsubscribe
© 2022 VotMedia

Type above and press Enter to search. Press Esc to cancel.