Stronghold Digital launches $10M private offering

Stronghold Digital Mining ( NASDAQ: SDIG ) has announced a private offering to raise $10M in gross proceeds. The bitcoin mining company will sell 9M shares of Class A common stock and share equivalents to an institutional investor and 1M shares of Class A common stock to its chairman and chief executive officer Greg Beard, in each case at a price of $1.00 per share equivalent. The company will also issue to the purchasers warrants to buy 10M shares, with an initial exercise price of $1.10 per share (subject to adjustments), and such warrants will not be exercisable until six months after issuance. Proceeds from the offering are expected to be used to acquire additional bitcoin miners. In connection with the offering, Stronghold Digital entered into a registration rights agreement with the institutional investor relating to the resale of the securities purchased in the offering. SDIG shares are up 4% premarket