Bitcoin miner Ionic Digital Inc. (NASDAQ: IOND) climbed more than 25% from its $50 opening price to nearly $63 in its Nasdaq debut on July 28. Ionic went public through a direct listing rather than a traditional initial public offering, with existing shareholders selling shares directly and the company raising no new capital. The miner emerged in January 2024 from Celsius Network's bankruptcy, taking over most of Celsius Mining's bitcoin mining equipment, approximately $195 million in cash, and 540 BTC. Ionic now leases its 234-megawatt Cedarvale facility in West Texas to AI cloud provider Nscale under a 10-year deal worth about $2 billion in contracted revenue, joining a wider group of Bitcoin miners pivoting to AI hosting to smooth out Bitcoin's price swings.
Ionic Digital Emerges from Celsius Bankruptcy in January 2024
Ionic Digital emerged in January 2024 from Celsius Network's bankruptcy. It took over most of Celsius Mining's bitcoin (BTC) mining equipment, plus about $195 million in cash and 540 BTC.
Hut 8 (NASDAQ: HUT) initially managed those mining sites under a four-year deal signed in February 2024. Ionic ended the arrangement less than a year later and took direct control, though Hut 8 kept a minority stake.
Ionic Digital Leases Cedarvale Facility to Nscale for AI Hosting
Ionic now leases its 234-megawatt Cedarvale facility in West Texas to AI cloud provider Nscale. The 10-year deal is worth about $2 billion in contracted revenue. A February amendment could push that total to $2.6 billion.
The debut adds Ionic to a wider group of miners pivoting to AI hosting to smooth out Bitcoin's price swings. Hut 8, TeraWulf, and IREN have already taken similar paths into longer-term hyperscaler contracts.
Ionic Digital Produces 25 BTC in May, Holds 2,861 BTC Treasury
Ionic hasn't stopped mining Bitcoin. It still runs four sites in Midland, Texas, and produced just under 25 BTC in May, on top of a 2,861 BTC treasury. Output should shrink as more capacity shifts to AI clients.
Ionic's listing gives Celsius creditors a tradable stock instead of a private claim. It also ties Ionic's future more to AI wins than to bitcoin's price.
FAQ
What happened to Ionic Digital stocks on July 28?
Ionic Digital Inc. (NASDAQ: IOND) climbed more than 25% from its $50 opening price to nearly $63 in its Nasdaq debut on July 28, giving the company an implied valuation of roughly $2.75 billion.
How did Ionic Digital emerge from Celsius bankruptcy?
Ionic Digital emerged in January 2024 from Celsius Network's bankruptcy, taking over most of Celsius Mining's bitcoin mining equipment, approximately $195 million in cash, and 540 BTC.
What is Ionic Digital's AI hosting deal with Nscale?
Ionic leases its 234-megawatt Cedarvale facility in West Texas to AI cloud provider Nscale under a 10-year deal worth about $2 billion in contracted revenue, with a February amendment potentially pushing the total to $2.6 billion.
