Sachem Head builds 9.99% stake in Ionic Digital after investing about $262m

Sachem Head Capital Management LP reports beneficial ownership of 4,500,125 Class A shares in Ionic Digital Inc. (CIK 2007691), 9.99% of the class, in a Schedule 13D filed with the US Securities and Exchange Commission on 21 October 2026. The filing gives 20 October 2026 as the date of the event requiring it.

The holding comprises 4,450,000 shares plus 50,125 shares issuable on exercise of warrants. A further 855,533 warrant shares are excluded by an ownership limit that caps the stake at 9.99% (Schedule 13D, Item 5, 21 October 2026).

The percentage is calculated on 44,996,175 shares outstanding at 25 August 2026, plus the 50,125 warrant shares (Schedule 13D, Item 5, 21 October 2026).

On 26 June 2026, funds managed by Sachem Head bought 2,264,150 Series A preferred shares at $53.00 each, with warrants over 905,658 Class A shares, for about $120 million. The preferred shares converted into Class A common stock when Ionic Digital listed directly on Nasdaq on 28 July 2026 (Schedule 13D, Item 3, 21 October 2026).

The funds have since bought 2,185,850 Class A shares on the open market for about $142.2 million, excluding commissions, paid from working capital (Schedule 13D, Item 3, 21 October 2026).

The funds have also entered into cash-settled total return swaps referencing 1,500,000 Class A shares with unaffiliated financial institutions (Schedule 13D, Item 6, 21 October 2026).

In its statement of purpose, Sachem Head says it bought the securities as an attractive investment opportunity and intends to discuss Ionic Digital's business, governance, board composition, capitalisation and strategy with management, the board, other stockholders and other parties (Schedule 13D, Item 4, 21 October 2026).

The filings do not state any specific proposal Sachem Head has made to the company. Loro has made no approach to the company. Figures are as reported in Sachem Head Capital Management's SEC filings.