Shares of Stronghold Digital Mining, a Bitcoin miner, climbed more than 62% on Wednesday when it debuted as a state-owned company.
a biotech, and Cyngn, a software vendor, have yet to open.
The three companies, listed on the Nasdaq, are the first of a dozen initial public offerings of the week to be priced.
Five more companies are expected to evaluate their offerings later Wednesday and trade on Thursday: Portillo’s, a fast-casual restaurant chain; the supplier of packaged coconut water, Vita Coco; Winc, an online wine club; Enfusion, an investment management software provider; and the biotechnology Ventyx Biosciences.
Stronghold stock (ticker: SDIG) started at $ 27 and changed hands at $ 30.87 at midday, up $ 11.87 from its offer price.
The strong open comes as Bitcoin hit a new high, trading above $ 65,000. The ProShares Bitcoin Strategy (BITO) ETF debuted on Tuesday, ending the day up 4.9%.
Late Tuesday, Stronghold raised nearly $ 115 million after increasing the size of its IPO. The company had planned to offer around 5.9 million shares, but ended up selling 6.7 million shares at $ 19 each, above its price range of $ 16 to $ 18. B. Riley Securities and Cowen are the underwriters of the transaction.
Stronghold owns and operates a waste coal power plant in Pennsylvania that converts waste coal – waste coal mining that is considered a pollutant – into energy used to mine Bitcoin.
The company currently operates around 3,000 cryptocurrency asset mining computers, known as “miners,” which process the transactions necessary to create Bitcoin. Stronghold plans to use some of the proceeds from the IPO to add an additional 55,800 miners by the end of 2022, according to the prospectus.
Stronghold said he was using 21st century crypto-mining techniques to address the impact of coal mining, according to the. Greg Beard, co-chairman and co-CEO of the company, is the former senior partner and head of natural resources at investment firm Apollo Global Management (ticker: APO). Beard and William Spence, co-chairman, will own nearly 59% of Stronghold’s voting rights after the IPO.
Context Therapeutics was scheduled to open later today. She is developing drugs focused on breast, ovarian and endometrial cancers. Its lead product candidate, extended-release onapristone or ONA-XR, targets endometrial and breast cancer, according to a prospectus.
The price of biotech was expected in August, when it planned to offer 1.5 million shares at $ 12 to $ 14, but pushed back the deal. He then increased the size of his deal to 5 million shares but reduced its price to $ 5. Context, which has raised $ 25 million, will trade under the ticker CNTX. ThinkEquity is the underwriter.
Cyngn raised about $ 26.3 million after selling 3.5 million shares at $ 7.50, the low end of its $ 7.50 to $ 9.50 range. Its ticker symbol is CYN. Aegis Capital Corp is the underwriter.
Cyngn provides autonomous driving software for industrial and commercial vehicles. The company’s Enterprise Autonomy Suite (EAS), which uses advanced autonomous driving technology along with data analytics, fleet management, cloud and connectivity, is in private beta. It targets 2024 for the large-scale commercialization of EAS, according to a prospectus.
Other companies offering autonomous driving software have also entered the market.
(TSP), which develops software that puts long-haul trucks on the road without a human driver, went public in April and is down about 7% from its IPO price of $ 40. Rivian, the electric truck maker backed by Amazon.com (AMZN) and Ford Motor (F), is expected to set the terms for its IPO soon. Rivian’s vehicles offer autonomous functionality, according to a prospectus.
Write to Luisa Beltran at [email protected]