Nasdaq-listed stronghold to buy Bitcoin miners worth millions
Nasdaq-listed Stronghold Digital Mining (SDIG) plans to buy bitcoin miners through $10 million in private equity funding. Bitcoin mining company plans to buy millions worth of miners to increase production and introduce new mining machines. The SDIG share price rises almost 4% in the pre-market hours.
Strong digital mining to buy miners worth millions
Strong Digital Mining signed a securities purchase agreement with institutional investors to sell 9 million Class A shares and Stronghold CEO Greg Beard to sell 1 million Class A shares under private placement to buy Bitcoin miners.
The company will also issue warrants to the buyers to purchase a total of 10 million Class A shares, with an initial exercise price of $1.10 per share, according to an April 21 press release.
“Gross proceeds from the private placement are expected to be $10 million, before offering expenses, and are expected to be used to acquire additional Bitcoin miners. Closing of the private placement is expected to occur on April 21, 2023.”
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Strong Digital Mining is restricted from issuing equity until 30 days after registration for the sale of securities and carrying out floating rate transactions for a period of 6 months.
The share price of Strong Digital Mining (SDIG) jumped over 4% in the pre-market hours. SDIG shares fell more than 5% to $1 on Thursday. SDIG stock has risen 132% this year as the Bitcoin price rose above $30,000.
Revenue for the December quarter beat market estimates by 15.59% and the loss narrowed compared to the September quarter.
The Bitcoin price is currently trading at $28,189, down 3% in the last 24 hours. The 24-hour low and high are $27,855 and $28,906 respectively.
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