Image Credit: Shutterstock
Key Takeaways
- Ionic Digital shares opened at $50 and closed near $63, up more than 25%, in its Nasdaq direct listing under ticker IOND.
- The company emerged from Celsius Mining’s 2024 bankruptcy and now leases power capacity to AI cloud provider Nscale under a deal worth up to $2.6 billion.
- Ionic still operates Bitcoin mining sites in Texas but is shifting more capacity toward AI-hosting clients as output declines.
Ionic Digital Inc. began trading on the Nasdaq Global Select Market on Tuesday, July 28, under the ticker IOND. Shares opened at $50, below Nasdaq’s $53 reference price, then climbed more than 25% during the session to close near $63, giving the Bitcoin miner an implied valuation of roughly $2.75 billion.
A Direct Listing, Not an IPO
Ionic went public through a direct listing rather than a traditional initial public offering. Existing shareholders sold their shares directly on the exchange, and the company raised no new capital in the process. Andy Stewart, Ionic’s chief executive, said in a company statement announcing the listing:
“Today marks a defining moment in Ionic Digital’s journey as we complete our listing on Nasdaq, create liquidity for our shareholders and begin our next chapter as a public company,”
Ionic’s Series A convertible preferred stock, sold to institutional investors for $400 million in June, priced at $53 per share, the same level as Nasdaq’s reference price for the debut.
From Celsius Bankruptcy to Public Markets
Ionic Digital emerged in January 2024 from the bankruptcy of Celsius Network’s mining unit, Celsius Mining. It took over most of Celsius Mining’s Bitcoin mining equipment, along with about $195 million in cash and 540 BTC, worth roughly $35 million at the time.
Hut 8 initially managed those mining sites under a four-year agreement signed in February 2024. Ionic ended that arrangement less than a year later and took direct operational control, though Hut 8 retained a minority equity stake in Ionic. Hut 8’s own stock has risen this year on similar AI-hosting agreements.
Leaning Further Into AI Infrastructure
Ionic leases its 234-megawatt Cedarvale facility in West Texas to AI cloud provider Nscale under a roughly 10-year agreement, contracted at about $2 billion in revenue. A February amendment to the agreement could raise that total to $2.6 billion.
Then-interim CEO Anthony McKiernan said at the time the deal demonstrated Ionic’s ability to support “the top players in AI and high-power computing” while generating revenue independent of Bitcoin mining.
Mining has not stopped. Ionic still operates four sites in Midland, Texas, producing just under 25 BTC in May, and holds 2,861 BTC on its balance sheet. Bitcoin output is expected to decline further as more of the company’s power capacity shifts to AI-hosting clients.
Part of a Broader Shift Among Public Miners
Ionic’s listing places it alongside Hut 8, TeraWulf, and IREN, other Bitcoin miners that have moved toward long-term hyperscaler contracts to offset the volatility of mining revenue tied directly to Bitcoin’s price.
The listing also gives former Celsius creditors, many of whom received IOND shares through the bankruptcy’s reorganization plan, a public market in which to trade those holdings for the first time.
Whether Ionic’s valuation holds above the $2.4 billion level implied by its June funding round remains to be seen, as the company continues shifting more of its power capacity toward AI-hosting clients.
