Pennsylvania bitcoin miner exceeds 52% on Nasdaq debut as bitcoin price hits record
Shares of Stronghold bitcoin Mining jumped 52 percent on their first trading day on Wednesday, as investors expressed interest in emerging companies tied to cryptocurrencies.
Trading on Nasdaq under the tick “SDIG,” a Pennsylvania company, mining bitcoin from charcoal, sold its stock for $ 19 a share, in addition to the expected range of $ 16 to $ 18.
The stock closed at $ 28.90 after a rise to $ 31.90. That gives the company a market capitalization of about $ 1.3 billion, based on calculated dividends.
Stronghold started as bitcoin hit something new all the time on Wednesday, approaching $ 67,000. The event came a day after the launch of the first wallet connected to bitcoin trading. The ProShares Bitcoin Strategy ETF is expected to be the first of many of those currencies, making bitcoin accessible in a variety of ways to investors with trading accounts.
Greg Beard, Stronghold’s chief executive officer, said the company had chosen to go public with the use of an IPO rather than go through the company’s Specific Acquisition (SPAC), which has been increasingly entering the market over the past few years. Beard spoke of the loyalty that comes with an IPO.
“I think we’re getting a lot of interest from investors, because we’ve been scrutinized by the SEC in the normal way,” Beard said. The company said it expects to raise $ 115 million from the donation.
Stronghold is competing in a competitive market that includes companies such as Riot Blockchain, Marathon Digital, and Core Scientific, which will list its stock on the Nasdaq this year as part of the SPAC merger.
bitcoin Mining from coal mines
The U.S. exploded into the bitcoin mining area last year, and crypto companies across the country are looking for competitive ways, often by finding the cheapest energy source available.
When Beijing decided to expel all of its crypto miners, Stronghold founder Bill Spence saw the opening.
Spence, a native of Pennsylvania, spent the last two decades cleaning up the garbage in his home country. He decided to turn to bitcoin mining earlier this year to try to take part of the market that was to be taken.
Pennsylvania has been in the coal mining business since the late 1700s. Until 1975, it was legal to place this coal mining product in piles next to the mouth of the mine. Beard noted that there are now more than 840 of these piles, some of them more than 700 feet [200 m] deep and appear to be “moonlight.”
“They are everywhere where coal was mined,” said Beard.
Stronghold brings waste coal from these areas to its two facilities, where it uses water bed boilers to remove toxins. That helps generate energy, which is used to generate electricity for its bitcoin miners.
“We are restoring and fixing the legacy problem from decades of coal mining in Pennsylvania,” Beard said. “Bitcoin mines are the most economical use of that power today.”
When it comes to the benefits of bitcoin, there is not much you can report. Beard says the company has held only a few hundred bitcoin so far.
“It’s not enough for me to brag right now,” he said.
Revenue in the first six months reached only $ 7.9 million, up from $ 2.2 million over the same period last year. The company lost $ 3.5 million in the first half of the year.
Beard said that by having the strength and resources of the mine, Stronghold can generate energy at a price that is part of the sector’s average.
“We’re going to have better marks than everyone else,” Beard said. “I think all miners will want their power if they understand that that is the direction the leaders are going.”