NEW YORK, Dec. 20, 2021 (GLOBE NEWSWIRE) — Stronghold Digital Mining, Inc. (Nasdaq: SDIG) (“Stronghold”, or the “Firm”), a vertically built-in Bitcoin mining firm with a give attention to environmentally helpful operations, has entered into 4 separate agreements to amass 9,080 Bitmain and MicroBT Bitcoin miners for the reason that Firm’s third quarter 2021 earnings launch on November 30, 2021. The mixture hash charge capability of those miners is roughly 826 petahash per second (“PH/s”), and Stronghold expects 4,800 miners (representing 426 PH/s of hash charge capability) to be delivered earlier than the tip of the 12 months or in early January, with the rest anticipated within the first half of 2022. All miners will likely be put in at Stronghold’s wholly owned reclamation and energy technology services. The mixture buy value for the primary 4,800 miners was roughly $35.7 million, representing lower than $84 per terahash per second (“TH/s”), with the remaining 4,280 miners acquired underneath a revenue share association with its present associate, Northern Information, with business phrases that Stronghold considers extremely favorable. Thus far, Stronghold has executed definitive buy agreements or has put in over 54,000 miners with hash charge capability of roughly 5.2 exahash per second (“EH/s”).
“Throughout our third quarter earnings name, we advised our traders that we might proceed to opportunistically procure miners from a wide range of sources, as dictated by anticipated return profile and accessible capability, and that’s what we did over the past two weeks,” mentioned Greg Beard, co-chairman and chief govt officer of Stronghold. “We consider these miner purchases additional our fast progress technique, and the near-term supply schedules for the open-market purchases improve anticipated return profiles and mitigate timing danger. Moreover, the growth of our revenue share association demonstrates our skill to creatively construction partnerships with trade leaders with a return profile that we consider is extraordinarily enticing. These purchases additionally spotlight one of many key advantages of our low-cost, vertically built-in enterprise mannequin: now we have entry to energy and capability to plug in miners.”
Individually, on December 15, 2021, Stronghold entered into an gear financing settlement with NYDIG ABL LLC for as much as roughly $54.0 million. The Firm has already obtained a primary advance of roughly $18.6 million (gross). The mixture principal excellent bears curiosity at 9.85% and will likely be repaid over the 24 months ending on December 25, 2023. The debt is non-recourse to Stronghold and is collateralized by the acquisition of 12,000 Antminer S19j Professional miners from Bitmain Applied sciences, Ltd.
“We consider this financing demonstrates our skill to shortly increase non-dilutive capital at a lovely value,” mentioned Mr. Beard. “Gear financing is our most popular non-equity supply of capital given the versatile phrases and non-recourse construction to Stronghold. We’ve been inspired with current developments within the miner gear finance market, which is changing into extra aggressive, making phrases extra enticing for Stronghold. We count on to proceed using modest quantities of apparatus financing with each present and new companions, together with money on the steadiness sheet and opportunistic monetization of our Bitcoin holdings, to proceed funding our progress plans.”
About Stronghold Digital Mining, Inc. Stronghold is a vertically built-in Bitcoin mining firm with an emphasis on environmentally helpful operations. Stronghold homes its miners at its wholly owned and operated Scrubgrass Plant and Panther Creek Plant, each of that are low-cost, environmentally helpful coal refuse energy technology services in Pennsylvania.
Cautionary Assertion Regarding Ahead-Wanting Statements Sure statements contained on this press launch represent “forward-looking statements.” throughout the that means of the Non-public Securities Litigation Reform Act of 1995. You’ll be able to establish forward-looking statements as a result of they include phrases corresponding to “believes,” “expects,” “could,” “will,” “ought to,” “seeks,” “roughly,” “intends,” “plans,” “estimates” or “anticipates” or the unfavorable of those phrases and phrases or related phrases or phrases that are predictions of or point out future occasions or developments and which don’t relate solely to historic issues. Ahead-looking statements and the enterprise prospects of Stronghold are topic to quite a lot of dangers and uncertainties which will trigger Stronghold’s precise ends in future durations to vary materially from the forward-looking statements. These dangers and uncertainties embrace, amongst different issues: our dependence on the extent of demand and monetary efficiency of the crypto asset trade; our skill to handle progress, enterprise, monetary outcomes and outcomes of operations; our skill to boost capital to fund enterprise progress; our skill to enter into buy agreements and acquisitions; public well being crises, epidemics, and pandemics such because the coronavirus pandemic; our skill to obtain crypto asset mining gear; our skill to answer value fluctuations and quickly altering know-how; our skill to function our coal refuse energy technology services as deliberate; and legislative or regulatory modifications, and legal responsibility underneath, or any future incapability to adjust to, present or future vitality rules or necessities. Extra data on these dangers and different potential elements that might have an effect on our monetary outcomes is included in our filings with the Securities and Alternate Fee, together with within the “Danger Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” sections of our Registration Assertion on Type S-1 (File No. 333-258188), filed on October 19, 2021, and any subsequently filed Quarterly Studies on Type 10-Q. Any forward-looking assertion speaks solely as of the date as of which such assertion is made, and, besides as required by regulation, we undertake no obligation to replace or revise publicly any forward-looking statements, whether or not due to new data, future occasions, or in any other case.
Matt Glover or Jeff Grampp, CFA Gateway Group, Inc. SDIG@GatewayIR.com 1-949-574-3860
Copyright 2021 GlobeNewswire, Inc.