Sterling Digital Plc CEO Stefan Michaelides talked with Proactive about the company’s unique approach to off-grid Bitcoin mining and its upcoming listing on the Aquis Growth Market. Sterling Digital is distinguishing itself from traditional miners by utilising stranded natural gas from oil fields, primarily in the United States, to power its operations. According to Michaelides, this model provides a cost advantage and addresses an environmental challenge by capturing methane-rich gas that would otherwise be vented or flared.
He explained, “We’re not only solving an environmental issue, but creating a valuable asset at the same time.” The company sources the gas at prices under one dollar per MCF, which translates to approximately half a cent per kilowatt-hour—significantly lower than grid-based energy costs.
Michaelides also discussed the scalability of Sterling Digital’s operations, noting that a series of assets are already lined up, setting a clear path for the next 12 to 18 months. While future international expansion is being considered, the focus remains firmly in the United States for now.
Sterling Digital plans to hold its mined Bitcoin as part of a treasury policy, potentially lending to liquidity providers to earn yield. The company's ticker on the Aquis exchange will be ASIC.
Proactive: So, for investors new to Sterling Digital, can you give us a quick overview of the company and what makes its approach to Bitcoin mining different from others in the sector?
Stefan Michaelides: Yes, Sterling Digital is a Bitcoin mining company but also a digital asset infrastructure company. I think the difference between Sterling Digital and other listed mining companies is the way that we use energy. So we don't operate on grid. We're entirely off-grid. We approach oil and gas producers and we take the natural gas that would otherwise be vented or flared and convert that into energy on site to power our Bitcoin mining data centres.
Proactive: At the moment, you're focused in the United States. So taking that stranded gas from fields there. How does that translate into lower costs and a competitive advantage compared with traditional grid-connected miners?
Stefan Michaelides: Well, vented or flared natural gas is a product that would otherwise be wasted. Producers wouldn't have earned any money from it. So we're able to approach producers, offer them a small amount of money for the natural gas, and then convert it on site using natural gas generators or natural gas turbines.
The efficiency that we are achieving is around 40%. So our energy contracts can be secured for less than a dollar per MCF. That translates to around half a cent per kilowatt hour, which is much lower than grid operators.
Proactive: And at the moment, the focus is in the United States. Are there plans to expand further afield?
Stefan Michaelides: I think our roadmap for the next 12 to 18 months is definitely going to be in the United States. We've been looking further afield at other natural gas assets that are stranded. But I think for the foreseeable future, we're going to remain in the United States. It's a good jurisdiction to mine Bitcoin.
Proactive: I suppose using stranded gas also aligns with ESG principles by reducing that flaring that you talked about. How important is that environmental story for investors and potential partners?
Stefan Michaelides: Yeah, I think it's important. Natural gas being vented is made up mainly of methane, which is one of the worst greenhouse gases. It's something you want to avoid. So Sterling Digital coming in and having that environmental factor — by utilising it, we're not only solving an environmental issue, but creating a valuable asset at the same time.
Proactive: So definitely a win-win there. Stefan, you're preparing to list on the Aquis Growth Market. Why did you choose Aquis? And what do you hope to achieve by that listing for Sterling Digital, but also for your shareholders?
Stefan Michaelides: Yeah. We chose to list on Aquis Exchange for scalability and visibility for Sterling Digital. We wanted access to capital markets that would allow us to achieve our goals at a faster rate. Aquis stood out to us because a lot of digital asset companies are listing now. And it seemed like the right fit for us.
Proactive: How do you plan to scale your mining operations from here? And also, what's your approach to managing Bitcoin reserves and capital allocation as the company grows?
Stefan Michaelides: For scale, we've got a lot of assets already lined up that we're ready to move into. So we kind of know what our next 12 to 18 months is going to look like. What we do with the Bitcoins that we've mined — we have a treasury policy. We intend to hold those Bitcoins and not to sell any. We will look for ways to earn yield from the treasury, potentially lending to liquidity providers. But our long-term outlook is to hold Bitcoin.
Proactive: And your ticker once you list on Aquis?
Stefan Michaelides: Is ASIC. Those are the type of machines that are used to mine Bitcoin: Application Specific Integrated Circuits.
Proactive: Well, good luck with the listing. I hope you'll keep us updated with your progress.