Ionic Digital Inc. (NASDAQ: IOND) saw its shares recover during its first day of trading on the Nasdaq, following a direct listing on Tuesday. The stock traded at $61.96 as of 3:55 p.m. EDT, representing a 16.9% increase from the exchange's reference price of $53. The U.S. cash market had just closed for the day.
The stock opened at $50 per share, giving the company an initial valuation of roughly $2.25 billion. By late session, the implied market capitalization had risen to approximately $2.78 billion, an intraday gain of about $537 million.
A key figure for investors is the $70 price level. Participants in the $400 million private placement completed in June received 7.55 million convertible shares at $53 each. Under the terms of the agreement, these shareholders are restricted from selling the shares below $70 for six months. With the Nasdaq listing, the preferred shares converted automatically into common stock.
These shares account for 16.8% of Ionic's pro forma common stock. The restriction could limit supply in the market below $70, but above that level, the contractual price floor no longer applies. The $70 threshold is about 13% above the latest quoted price of $61.96.
Ionic shares were trading at roughly 14.5 times the midpoint of its projected 2026 revenue of $190 million to $195 million. This ratio is based on equity value to sales, not an enterprise-value multiple. The company's valuation is largely tied to its strategic pivot toward artificial intelligence infrastructure.
Preliminary second-quarter results indicate a net loss between $34 million and $35 million, with adjusted EBITDA projected at $36 million to $37 million, a non-GAAP measure. A significant agreement with Nscale will begin generating fixed rent starting August 1. The 234-megawatt lease is expected to contribute about $1.95 billion in contracted revenue through January 2037.
NVIDIA Corporation (NASDAQ: NVDA) is backing up to $860.3 million in rent payments for the first five years of the lease. Nscale has also committed an additional 89 megawatts of capacity once available, pending regulatory approval.
Matt Kennedy, senior strategist at Renaissance Capital, noted that Ionic's direct listing is set to become the largest since 2021. The company began 2024 holding bitcoin-mining assets acquired from Celsius Mining but shifted focus to AI and high-performance computing in 2025.
Ionic did not generate any proceeds from the listing, as all shares came from existing shareholders. The majority of common shares are available for public trading, though affiliates face certain restrictions. Risks include potential selling from unlocked legacy shares and the possibility of placement shares becoming available if the $70 level is reached. Regulatory approval is still needed for the additional 89 megawatts.
The coming test for the stock is whether it can hold above its opening range. Key operational milestones include the start of August's rent payments and the release of full second-quarter results.
