The IPO Buzz: Riding the Bitcoin Wave

Stronghold Digital Mining (SDIG) jumped 42 percent to open at $27 in its NASDAQ debut today. SDIG is riding the Bitcoin wave. Stronghold Digital Mining added shares and priced its IPO at $19 – $1 above the top of its $16-to-$18 range – on Tuesday night. The Bitcoin miner’s IPO raised $126.9 million – the result of its above-range pricing and an increase in the deal’s size to 6.69 million shares, up from 5.88 million. The stock closed its first day of trading at $28.90, up 52.1 percent.

Timing was on SDIG’s side.  Bitcoin hit a record high, topping $62,000 on Tuesday ahead of the IPO’s pricing, and in sync with the NYSE debut of the ProShares Bitcoin Strategy ETF (BITO). ProShares’ execs rang the opening bell at the New York Stock Exchange on Tuesday; the ETF gained 2 percent. On Wednesday, Bitcoin set another record, vaulting above $66,000, according to MarketWatch.

“Even dinosaurs who don’t understand crypto must admit that Bitcoin is a thing,” a veteran IPO trader says, reflecting on the momentum behind this deal.

Retail investors, including “Robinhooders,” drove the demand for Stronghold Digital Mining’s IPO.

Stronghold Digital Mining burns waste coal in a Pennsylvania plant to power its fleet of computers that “mine” or produce Bitcoin.

B. Riley Securities, Cowen & Co. and Tudor, Pickering Holt & Co. were the joint book-runners on Stronghold Digital Mining’s IPO.

Tuesday night turned out to be a busy one for IPO bankers. Five SPACs were priced, raising $960 million, and two small-cap IPOs – Context Therapeutics (CNTX) from ThinkEquity and Cyngn (CYN) from Aegis Capital – also got done.

The week ramped up early Monday with a flurry of SEC filings, including the launch of another biotech – Xilio Therapeutics – for pricing Thursday night.

Four SPACs were priced Monday night, including one with a crypto connection – Blockchain Moon Acquisition (BMAQU).

Hot Dogs Tonight

Portillo’s (PTLO proposed), the iconic Chicago hot dog eatery, is topping the IPO menu tonight.  The regional restaurant chain’s IPO is viewed as one of the week’s best deals.

Enfusion (ENFN proposed), a software (SaaS) provider that serves the investment management industry,  is also attracting attention.

A total of eight IPOs, including Portillo’s and Enfusion, are scheduled for pricing Wednesday night.

Healthcare rules Thursday night’s pricing schedule, when deals from these three companies are on tap: medical device maker Minerva Surgical (UTRS proposed), cancer biotech Xilio Therapeutics (XLO proposed) and Marpai (MRAI proposed), a healthcare insurance platform that serves self-insured employers. Aris Water Solutions (ARIS proposed), a water management and recycling company that serves the oil and gas fracking industry in the Permian Basin, is also on the pricing roster for Thursday night.

Chips and Fashion

The biggest buzz is coming from the IPO pipeline. Chip maker GlobalFoundries (GFS proposed) filed pricing terms this week for a $2.45 billion IPO.  Rent the Runway (RENT proposed), a pre-pandemic fashion darling, threw open its designer closet doors when it filed pricing terms for a $292.5 million IPO. Both IPOs promptly climbed onto next week’s IPO Calendar.

Stay tuned.

For more information, please check the IPO Calendar and click on a company’s name, which will take you to the IPO Profile and a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.