The energy source is also highly vulnerable to combustion and ignites wildfires that disproportionately affect poor communities. Toxic particulate matter from coal refuse infiltrates the air, and affects nearby water sources, killing local species and disrupting ecosystems. The waste from coal plants has had devastating environmental effects. The company is environmentally-friendly - but not exactly carbon-neutralĬoal refuse has been piling up in Pennsylvania since the Industrial Revolution. Spence on the other hand comes from a mining engineering background specifically in turning coal refuse into electricity since 1993.Ĥ. Beard has had a career in financial portfolio management with a focus on natural resources, namely at Apollo Global Management. The two co-founders, Gregory Beard and William Spence, seem to bring a relevant skillset to the board operations. The founding team has the right experience for the task Eventually, it aims to operate 55,000 of them by 2022.ģ. Post-IPO, the company aims to acquire a third plant in Pennsylvania, and add 26,000 rigs to its inventory. Besides, it owns 3,000 rigs (the computer machines that mine Bitcoin by performing complex and energy-intensive computations). The IPO will multiply its capacity manifoldĪt this time, Stronghold Digital Mining runs one plant and will soon put another one that it has recently purchased to use. This presumably makes the cryptocurrency-mining company vulnerable to new entrants in the space.Ģ. However, there is no indication that the company uses proprietary technology to repurpose coal refuse, nor is its business model particularly reliant on scale-dependent network effects. It’s able to do that because the company is transforming environmentally-detrimental coal refuse to power its Bitcoin mining operations. The company is riding regulatory tailwinds with tax credits for reclaiming coal waste for energy production. The company also manages its Bitcoin assets such that it may only convert enough Bitcoin to keep itself afloat while it bets on higher conversion rates at a future date. On top of this, it sells the excess energy it produces. Stronghold Digital Mining uses the energy it derives from coal refuse at a lower-cost to fuel its Bitcoin mining operations. Its bet on lower-cost energy makes it stand out from competitors We decided it was worth taking a closer look at the business. Some observers, however, are complaining that it is over-valued. Importantly, it helps solve a problem that has lately dogged crypto, and particularly Bitcoin - that it uses too much energy and is bad for the environment. There are lots of reasons to like Stronghold Digital Mining. "Low float of just 5.8M shares, and the 'eco-friendly' angle make it a potent combo of buzz and demand imbalance that often provides a lucrative upside opportunity for an IPO scalp trade." "If #Bitcoin keeps running through the week, the $SDIG IPO could be a very hot debut play," a user called IPOWarrior tweeted ahead of the offering. The company, now trading under the ticker symbol SDIG, raised $127 million in the offering, the proceeds of which it plans to use for acquiring new power generation assets and miners. The Pennsylvania-based company debuted on the Nasdaq on Wednesday at $19 per share, and the price swiftly jumped to $30. Now today another boat has been lifted by that tide: the initial public offering of eco-friendly Bitcoin miner Stronghold Digital Mining. Unsurprisingly, Bitcoin has jumped to an all-time high of more than $66,000. On top of that, rising inflation is heightening interest in alternative investments. After long-awaited approval by securities regulators, the country’s first Bitcoin futures ETF also launched on Tuesday. the top place in the world for Bitcoin and Ethereum mining. Three weeks ago, China banned all cryptocurrency transactions and mining operations, making the U.S. It’s a good time to be in the crypto mining business in the U.S.
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