Sachem Head Capital Management reported that it beneficially owned 4,500,125 Ionic Digital Class A shares, equal to 9.99% of the class, in a Schedule 13G/A filed with the SEC on Friday. In July, Sachem Head disclosed a 6.9% stake of 3,169,808 shares.
The new figure combines 4,450,000 shares held directly by Sachem Head funds and 50,125 shares issuable on warrant exercise. Of the direct shares, 2,264,150 came from the automatic conversion of Ionic's Series A convertible preferred stock at its July 28 Nasdaq direct listing. Sachem Head bought the rest in the open market, though the filing does not say when.
The funds still hold warrants for 905,658 shares, the same total as in July. A 9.99% ownership limit blocks exercise above the cap, leaving 855,533 warrant shares out of the reported figure.
Sachem Head co-led Ionic's $400 million equity round in June with Attestor and Oaktree Capital Management. Citadel and Weiss Asset Management also took part. Ionic said the round implied a $2 billion pre-money equity valuation.
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Ionic's June S-1 described a 126-month lease with Nscale at its Ward County, Texas, site. The lease covers 234 MW of energy capacity and carries about $1.95 billion in contracted revenue. Another 89 MW is contractually slated for Nscale when it becomes available, subject to regulatory approval, and Ionic is seeking to expand the site to about 700 MW.
