Stronghold Digital Mining, Inc. (SDIG) (“Stronghold” or the “Firm”) introduced at present that it has entered into a brand new two-year internet hosting settlement with Cantaloupe Digital LLC, Canaan, Inc. (hereinafter – Canaan) subsidiary.
Canaan Bitcoin Mining Contract
in 2023 April 27 The corporate signed a two-year internet hosting settlement with Cantaloupe Digital LLC, a subsidiary of Canaan, which is able to see Stronghold handle 2,000 A1346 (110 TH/s per miner) and a pair of,000 A1246 (90 TH/s per miner). Bitcoin miners powered by Canaan with a mixed hash fee capability of 400 PH/s (Canaan Bitcoin Mining Settlement).
The Canaan Bitcoin mining contract consists of the next key phrases:
- Two-year time period, with no chance of unilateral early termination.
- Stronghold will obtain 50% of the bitcoin mined by Canaan’s miners and funds from Canaan equal to 55% of the corporate’s internet vitality prices on the Panther Creek plant, in {dollars} per megawatt hour, on a month-to-month foundation. .
- Stronghold will retain all benefits of promoting energy to the community, and if Stronghold decides to limit Canaan miners from promoting energy to the community, Canaan will obtain an precise fee representing the estimated income generated from Bitcoin mining. if miners weren’t restricted.
- A1246 Bitcoin miners to be put in by 2023 Could 15, and A1346 Bitcoin miners till 2023. June 15 All 2,000 A1246 Bitcoin miners are presently in place and prepared for deployment.
“Whereas now we have emphasised our mandatory deleveraging efforts over the previous ten months, we imagine probably the most significant measure of our work is the efficiency of our mining fleet at present,” stated Stronghold Chairman and CEO Greg Beard. “Since August, we have acquired or bought roughly 22,000 further miners with a hash fee of roughly 2.2 EH/s, and have invested roughly $15 million. USD of further capital, which is roughly USD 7 per TH/s. We now have achieved this by means of opportunistic acquisitions of Bitcoin miners in an unfavorable market and distinctive internet hosting agreements the place we preserve the expansion of Bitcoin mining economics and energy in step with our vertically built-in enterprise mannequin.
“Our beforehand introduced settlement to return roughly 19,000 delivered and roughly 26,000 complete miners with hash charges of roughly 1.8 EH/s and a pair of.5 EH/s respectively to our lender in alternate for $67 million. USD debt cancellation. , buyers have understandably questioned our development prospects. Our current actions ought to assist alleviate these considerations. We removed about 2.5 EH/s of hash fee capability at a price of about $90 million. USD and was financed from roughly 67 million USD debt – and we have nearly changed that capability with extra environment friendly miners with hash fee capability of two.2 EH/s with solely $15 million in further capital. 90 million $15M Miner Alternative USD miners, and paired with the same hash fee, considerably improves capital effectivity and return on fairness, all else being equal. This Canaan deal will permit us to attain a hash fee capability of roughly 3.6 EH/s, leaving only some thousand unused mining slots in our wholly owned knowledge facilities.
William Spence retired
As beforehand revealed, in 2023 March 29 The Firm’s co-founder and former Chairman, William “Invoice” Spence, has introduced his retirement and resignation from the Firm’s Board. Invoice will proceed to work with the Firm in a lowered capability below a not too long ago negotiated consulting settlement centered on supporting the Firm’s efforts in regeneration, fly ash restoration and carbon sequestration. Invoice intends to spend his retirement together with his household, together with one grandchild and two extra on the way in which.
“Invoice, a local of Pennsylvania who grew up surrounded by piles of coal waste, is a pioneer within the coal phase-out and ash restoration market, and has spent a long time making an attempt to wash up one of the vital environmentally uncared for areas in the US.” States,” Mr. Beard commented. “We’re very grateful for Invoice’s imaginative and prescient, service and management. We want Invoice the most effective in his well-deserved retirement as he focuses on household and well being, however we’re grateful that he’ll proceed to work with Stronghold in areas that Invoice is keen about and that present nice alternatives for the corporate.
About Stronghold Digital Mining, Inc.
Stronghold is a vertically built-in Bitcoin mining firm centered on environmentally pleasant operations. Stronghold homes its miners at its wholly owned and operated Scrubgrass and Panther Creek amenities, that are low-cost, environmentally pleasant waste-to-coal energy era amenities in Pennsylvania.
Investor contacts:
Matt Glover or Alex Kovtun
Gateway Group, Inc.
SDIG@GatewayIR.com
1-949-574-3860
Media contact:
contact@strongholddigitalmining.com
Ahead-looking statements:
The knowledge, monetary projections and different estimates contained herein include “forward-looking” statements as that time period is outlined in 1933. Part 27A of the Securities Act, as amended, and Sec. Part 21E of the Securities Trade Act, as amended in 1995 The Non-public Securities Litigation Reform Act, together with, however not restricted to, statements relating to the Firm’s anticipated efficiency in reference to the restructuring of the Firm’s debt as offered for within the Amended Credit score Settlement and the closing of the beforehand introduced alternate settlement with sure noteholders. Such forecasts and estimates relate to future occasions and shouldn’t be considered info, mirror numerous assumptions of the Firm’s administration relating to the long run efficiency of the Firm, and are depending on vital enterprise, monetary, financial, operational, aggressive and different issues. dangers and uncertainties and unexpected occasions (lots of that are tough to foretell and past the Firm’s management) that might trigger precise outcomes to vary materially from the statements and knowledge contained herein. Ahead-looking statements relate to future circumstances and outcomes and different statements that aren’t historic info and are generally recognized by the phrases “could”, “will”, “ought to”, “attainable”, “intend”, “anticipate”, “attempt” ”, “search”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “imagine”, “could”, “mission”, “anticipate”, “proceed”, “goal” or related phrases or sayings Ahead-looking statements are based mostly on present plans, estimates and expectations, that are topic to dangers, uncertainties and assumptions. Ahead-looking statements could contain numerous dangers and uncertainties, together with these described below the heading “Danger Components” as detailed infrequently in Stronghold’s studies filed with the SEC, together with Stronghold’s Annual Report on Kind 10-Okay, Periodic Quarterly Experiences. on Kind 10-Q, present studies on Kind 8-Okay and different paperwork filed with the SEC. Such dangers and uncertainties will not be distinctive. Any forward-looking statements communicate solely as of the date of this announcement. The Firm undertakes no obligation to replace any forward-looking statements, whether or not on account of new data or adjustments, future occasions or in any other case, besides as required by legislation. Readers are cautioned to not place undue reliance on any of those forward-looking statements. Moreover, the descriptions of market situations and alternatives offered herein are for informational functions solely; there could be no assurance that such situations will truly happen or end in optimistic returns. Recipients of this discover ought to examine and consider any data contained herein for themselves.
