Ionic Digital jumps 25% in Nasdaq debut after AI infrastructure pivot

Ionic Digital rose 25% in its Nasdaq debut, valuing the former Celsius Mining offshoot at about $2.4 billion after its pivot to AI infrastructure.

"The market is rewarding our strategy of converting bitcoin mining infrastructure into AI-ready data centers," Matt Prusak, chief executive officer of Ionic Digital, said.

The company, formed in January 2024 from Celsius Mining's bankruptcy assets, listed 10.8 million existing shares at a reference price of $53. Institutional investors had purchased Series A convertible preferred stock at the same price in June, contributing $400 million. J.P. Morgan, Jefferies and BTIG advised on the direct listing.

The 10-year triple-net lease with Nscale at Ionic's Cedarvale facility in Texas covers 323 megawatts and is expected to generate $1.95 billion to $2 billion in contracted revenue. The company projects 2026 revenue of $190 million to $195 million with adjusted EBITDA of $36 million to $37 million, though it expects a net loss of $34 million to $35 million.

Ionic maintains bitcoin mining operations in Texas and holds bitcoin on its balance sheet, preserving its crypto exposure. But the Nscale deal positions the company squarely in the AI infrastructure build-out, a pivot also pursued by peers Core Scientific, Hut 8 and Applied Digital.

Core Scientific on the same day announced a 15-year, 529-megawatt infrastructure partnership with Advanced Micro Devices that could generate more than $14 billion in base contracted revenue, showing the competitive intensity in the sector.

Ionic's advantage lies in the size and duration of its Nscale contract, which provides multiyear revenue visibility. The risk is tenant concentration: if Nscale encounters financial difficulty, the $2 billion revenue stream would be at risk.

The direct listing structure means no new capital flows to the company, but with $400 million raised in June, Ionic does not need immediate funding. The structure provides liquidity for existing shareholders without dilution.

This article is for informational purposes only and does not constitute investment advice.