9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
US-based Stronghold Digital Mining announced “significant steps” to restructure debt with a reduction in bitcoin mining capacity in the second quarter. The firm liquidated an outstanding hardware loan
US-based Stronghold Digital Mining announced “significant steps” to restructure debt with a reduction in bitcoin mining capacity in the second quarter.
The firm liquidated an outstanding hardware loan from NYDIG and brought back approximately 26,200 ASIC miners with a total hashrate of approximately 2.6 EH/s.
Stronghold also agreed with WhiteHawk to increase the maturity of the loan from 14 to 36 months and a $20 million line of credit.
Along with changes in convertible bond issuance terms, the measures enabled the company to reduce debt principal by $79 million and interest payments by $113 million by year-end.
Stronghold operates two 165 MW power plants in Pennsylvania that use coal waste.
“Our electricity generation capacity remains unchanged, so despite the short-term reduction in the bitcoin miner fleet, we have greater access to strong electricity markets that remain scarce. We believe this is especially true for the next six months, including winter, when forward prices show that electricity sales will be an attractive alternative to mining, Stronghold CEO Greg Bird said in a statement.
He added that the company will continue to invest in its energy business and will also consider purchasing mining hardware at “reasonable prices.”
In the second quarter, Stronghold mined 637 BTC, which is 45% more than in January-March. The company’s fleet consisted of about 16,000 devices with a hashrate of about 1.4 EH/s.
At the end of the reporting period, the firm posted a net loss of $40.2 million on revenue of $29.2 million.
As of June 30, Stronghold’s cryptocurrency reserves totaled 268 BTC.
On October 20, 2021, the company went public on the Nasdaq, selling 6,687,305 Class A shares at a price of $19 for a total of $127 million. The closing price of the securities on August 16 was $3.19.
Recall that ForkLog understands in a separate article how the collapse of the bitcoin price has affected large miners and what will happen next in the industry.
Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
