Stronghold Mining typically generates its energy from coal waste which is notably spread at various sites in Pennsylvania. There are about 840 piles of waste coal in the state resulting from centuries of coal mining activities.
The shares of Pennsylvania-based Bitcoin mining firm, Stronghold Digital Mining Inc (NASDAQ: SDIG) saw an impressive leap on its first trading day as it closed the session with a 52.11% growth. Stronghold’s debut performance is a reflection of how geared up investors are about stocks that are closely linked to digital currencies. The heightened demand pushed the IPO to be priced at $19 per share, a figure that is much higher than the expected range of $16 to $18.
SDIG traded as high as $31.90 in the intraday session but closed out at $28.90, giving it a market capitalization of about $1.3 billion on a fully diluted basis. The impressive rally of the company comes at a time when Bitcoin price recorded a new All-Time High (ATH) of $66,930.39, per data from CoinMarketCap.
The public market debut of Stronghold also trails the New York Stock Exchange (NYSE) recorded breaking listing of America’s first Bitcoin-linked Exchange Traded Fund (ETF) product from ProShares. The ETF, which trades under the ticker symbol ‘BITO’ tracks Bitcoin Futures, and it marks a watershed moment in both the history of ETFs and the digital currency industry respectively.
The success of the Initial Public Offering (IPO) was detailed by the company in a press release in which it said it expects to receive approximately $114.8 million of net proceeds from the offering, or $132.5 million if the underwriters exercise their option to purchase additional shares in full.
Stronghold Mining Firm and Its Market Advantage
The clamor for a switch to clean energy sources is growing by the day, and all the firms operating in the industry are exploring ways to gain an advantage in this regard.
Stronghold Mining typically generates its energy from coal waste which is notably spread at various sites in Pennsylvania. According to the company’s Chief Executive Officer, Greg Beard, there are about 840 piles of waste coal in the state resulting from centuries of coal mining activities.
The company excavates the waste coal from these sites to its two facilities, where it uses fluidized bed boilers to remove toxins. This not only helps produce power, which is then used to generate electricity for its bitcoin miners but also aid in environmental reclamation.
“We are reclaiming and remediating a legacy problem from decades of coal mining in Pennsylvania,” said Beard. “Bitcoin mining is the most economic use of that power today.”
The ability to generate its own power has positioned the company to reduce the cost of electricity supply to its miners in a considerable manner. This notably gives the company a competitive advantage when compared to other players in the space.
“We’ll have better margins than everybody else,” Beard said, “I think that all the miners will gravitate toward having their own power when they understand that’s the direction that the leaders are going.”