7 Things to Know About the Upcoming ~$800M Stronghold Digital Mining (SDIG) IPO

October 13, 2021 6:16 PM EDT

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Stronghold Digital Mining, Inc. (NASDAQ: SDIG) is set to launch its U.S. IPO next week. Stronghold Digital Mining, is a vertically integrated crypto asset mining company currently focused on mining Bitcoin, claiming to be one of the first vertically integrated crypto asset mining companies with a focus on environmentally-beneficial operations. The stock will be available on the Robinhood IPO access platform, among other brokerages. Below are 7 important facts to focus on into the IPO:

1. Stronghold Digital Mining IPO Timing: Stronghold Digital Mining, Inc. is expected to have its IPO on the NASDAQ on Oct 20, 2021. The stock ticker is 'SDIG'. Normally IPOs on the NASDAQ began trading between 10AM-2PM ET.

2. Stronghold Digital Mining IPO Price: The company anticipates the initial public offering price to be between $16.00 and $18.00.

3. Shares Offered: The company is offering 5,882,352 shares of its Class A common stock. There will be ~45.26 million Class A and Class V shares outstanding following the offering.

4. IPO Valuation: A pricing at the midpoint of the range would value the company at around $770 million.

5. IPO Underwriters: B. Riley Securities and Cowen are acting as bookrunners, with Tudor, Pickering, Holt & Co. as a lead manager and D.A. Davidson & Co., Compass Point and Northland Capital Markets as co-managers for the offering.

6. Important Financials: Total revenue for the six months ended June 30, 2021 from all segments increased by $5.7 million, or 263.7% year-over-year, to approximately $7.9 million. The largest single source of revenue growth is from energy generation and the continued ramp-up to full MW capacity. This growth was approximately $2.9 million or 496.4% year-over-year. Additionally, total crypto asset revenue growth of approximately $3.1 million year-over-year included approximately $1.2 million from hosting and an increase of $1.9 million from mining.

7. Crypto Mining Fleet: The company currently operates approximately 3,000 crypto asset mining computers (known as “miners”) with a hash rate capacity of approximately 185 petahash per second (“PH/s”). The company has entered into definitive agreements with three suppliers to purchase approximately 26,150 additional miners with a total hash rate capacity equal to over 2,500 PH/s. Of these miners, 72% are scheduled to be delivered in 2021, with the next batch scheduled for delivery in October 2021, 21% are scheduled to be delivered in the first quarter of 2022, and the remaining 6% are scheduled to be delivered during the remainder of 2022. With part of the proceeds of this offering, the company intends to procure approximately 55,800 additional miners, which is anticipated to bring its total hash rate capacity to over 2,100 PH/s by December 2021 and to over 8,000 PH/s by December 2022.



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