Nasdaq-listed Stronghold Digital Mining (SDIG) plans to purchase bitcoin mining machines through $10 million in private equity financing. The Bitcoin mining company plans to purchase miners worth millions to increase production and introduce new mining machines. SDIG stock price is rallying nearly 4% in pre-market hours.
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 purchase Bitcoin miners.
Stronghold entered into a Master Sales and Purchase Agreement to acquire 5,000 new, latest-generation MicroBT Whatsminer M50 miners.
Also, the Company will issue to the Purchasers warrants to purchase an aggregate of 10 million Class A shares, with an initial exercise price of $1.10 per share, as per a press release on April 21.
“Gross proceeds from the Private Placement are expected to be $10 million, before deducting offering expenses, and are expected to be used to acquire additional Bitcoin miners. The closing of the Private Placement is expected to occur on April 21, 2023.”
Also Read: Banks, VCs, Pension Funds Once Crypto-Friendly Steering Away From Crypto
Strong Digital Mining is restricted from issuing equity until 30 days after registration for the sale of securities and effecting variable rate transactions for a period of 6 months.
The stock price of Strong Digital Mining (SDIG) jumped over 4% in pre-market hours. SDIG shares fell over 5% to $1 on Thursday. The SDIG shares price has rallied 132% this year as Bitcoin price surged above $30,000.
The revenue for the December quarter beat market estimates by 15.59% and the loss reduced as compared to the September quarter.
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.
Also Read: Crypto Expiry: Bitcoin and Ethereum Bearish Price Move To Break Key Support Levels?
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