Ionic Digital Inc. (NASDAQ: IOND) rose more than 25% from the opening price of $50 to about $63 in the Nasdaq debut on Tuesday, July 28. The move gave the Bitcoin miner a valuation of $2.75 billion.
Ionic went public through a direct listing instead of an initial public offering (IPO). Existing shareholders sold their shares directly, and the company did not raise new capital.
From Celsius Bankruptcy to Nasdaq
Ionic Digital it has been discovered in January 2024 from the collapse of the Celsius Network. It took most of Celsius Mining’s bitcoin (BTC) mining equipment, including about $195 million in cash and 540 BTC.
Hut 8 (NASDAQ: HUT) initially managed the mining site under a four-year agreement that was signed in February 2024. Ionic terminated the arrangement less than a year later and took direct control, although Hut 8 retained a small stake. Hut 8 his the load is too much this year for similar AI projects.
Betting on AI Infrastructure
Ionic now rentals its 234-megawatt Cedarvale facility in West Texas to AI cloud provider Nscale. The 10-year contract is worth about $2 billion in contractual obligations. The February amendment could push that amount to $2.6 billion.
Ionic has not stopped mining Bitcoin. It still operates four locations in Midland, Texas, and was made under 25 BTC in May, above the 2,861 BTC Treasury. Output should decrease as more power shifts to AI clients.
The first adds Ionic to the main group of miners are turning to AI causing control of Bitcoin price changes. Hut 8, TeraWulf, and IREN have already taken similar approaches to long-term contracts.
Ionic’s listing gives Celsius’ lenders commercial stock instead of private equity. It also ties the future of Ionic to the success of AI rather than the value of bitcoin.
A note Bitcoin Miner Ionic Rises 25% On Nasdaq For First Time, Joining Hut 8’s AI Shift appeared for the first time BeInCrypto.
