Stronghold Digital Mining, Inc. (SDIG) (“Stronghold” or the “Firm”) in the present day introduced that it has entered into a brand new two-year internet hosting settlement with Cantaloupe Digital LLC, a subsidiary of Canaan, Inc. (“Canaan”).
Canaan Bitcoin mining deal
On April 27, 2023, the Firm signed a two-year internet hosting settlement with Cantaloupe Digital LLC, a subsidiary of Canaan, underneath which Stronghold will function 2,000 A1346 (110 TH/s per miner) and a couple of,000 A1246 (90 TH/ s per miner) Bitcoin miners supplied by Canaan (the “Canaan Miners”), with a complete hash charge capability of 400 PH/s (the “Canaan Bitcoin Mining Settlement”).
The Canaan Bitcoin Mining Settlement comprises the next key phrases:
- Period of two years, with out the potential of unilateral early termination.
- Stronghold will obtain 50% of bitcoin mined by Canaan miners and can obtain funds from Canaan equal to 55% of the web value of electrical energy on the firm’s Panther Creek mill, in {dollars} per megawatt-hour, calculated on a month-to-month foundation . .
- Stronghold will retain all advantages related to promoting electrical energy to the grid and, if Stronghold chooses to scale back Canaan Miners to promote electrical energy to the grid, Canaan will obtain an equalization cost which represents estimates of Bitcoin mining revenues would have been generated if the miners had not been lowered.
- A1246 Bitcoin miners should be put in by Might 15, 2023 and A1346 Bitcoin miners should be put in by June 15, 2023. All 2,000 A1246 Bitcoin miners are at the moment on web site and able to deploy.
“Whereas we have now centered on our essential deleveraging efforts over the previous ten months, we consider probably the most significant measure of our work is the capital effectivity of our mining fleet in the present day,” stated Greg Beard, President and CEO of Stronghold. “Since August, we have now obtained or bought roughly 22,000 further miners, with hash charge capability of roughly 2.2 EH/s, whereas investing roughly $15 million in further capital, or roughly $7 per TH /s. Now we have achieved this by way of opportunistic purchases of bitcoin miners in a struggling market and thru distinctive internet hosting offers the place we retain publicity to the financial system and energy of bitcoin mining, in keeping with our vertically built-in enterprise mannequin.
“Our beforehand introduced consensus return of roughly 19,000 delivered and roughly 26,000 complete miners, with hash charge capability of roughly 1.8 EH/s and a couple of.5 EH/s, respectively, to our lender in August, in change for extinguishing $67 million in debt, understandably brought about traders to query our development prospects. Our latest actions ought to assist alleviate these considerations. We misplaced about 2.5 PE/s of hash charge capability – which value about $90 million and was funded with about $67 million in debt – and practically changed that capability with extra environment friendly miners , which equates to a hash charge capability of two.2 PE/s, with solely $15 million in further capital. Changing $90 million of miners with $15 million of miners, whereas ending up with an identical hash charge, dramatically improves capital effectivity and return on fairness, all else being equal. This Canaan deal will convey us to roughly 3.6 PE/s of hash charge capability delivered and leaves us with just a few thousand unused miner slots in our wholly owned information facilities to fill.
Retired William Spence
As beforehand reported, on March 29, 2023, the corporate’s co-founder and former co-chairman William “Invoice” Spence introduced his retirement and resignation from the corporate’s board of administrators. Invoice will proceed to work with the corporate in a restricted capability by way of a not too long ago agreed consultancy settlement centered totally on supporting the corporate’s efforts associated to restoration, useful use of ash and carbon sequestration. Invoice plans to spend his retirement along with his household, together with a grandchild and two extra to come back.
“A local of Pennsylvania who grew up surrounded by piles of coal waste, Invoice is a pioneer within the beneficial-use ash and coal waste markets and has spent many years attempting to scrub up some of the uncared for areas on the planet. environmental plan in the USA,” commented Mr. Beard. “We’re extraordinarily grateful for Invoice’s imaginative and prescient, service and management. focuses on his household and his well being, however we’re grateful that he continues to work with Stronghold in areas which are Invoice’s passions and signify vital alternatives for the enterprise.
About Stronghold Digital Mining, Inc.
Stronghold is a vertically built-in bitcoin mining firm with a deal with environmentally useful operations. Stronghold homes its miners at its 100% owned and operated Scrubgrass and Panther Creek mills, each of that are low-cost, environmentally useful waste coal energy technology services 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 data, monetary projections and different estimates contained herein comprise “forward-looking” statements as that time period is outlined in Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade. Act of 1934, as amended by the Non-public Securities Litigation Reform Act of 1995, together with however not restricted to statements relating to the anticipated efficiency of the Firm following the proposed debt restructuring of the Firm by the amended credit score settlement and the closing of the beforehand introduced change settlement with sure noteholders. These projections and estimates relate to future occasions and shouldn’t be relied upon as information, and replicate numerous assumptions of the Firm’s administration relating to the longer term efficiency of the Firm and are topic to vital enterprise, monetary, financial, operational modifications. , aggressive and others. dangers, uncertainties and contingencies (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 included herein. Ahead-looking statements relate to future circumstances and outcomes and different statements that aren’t historic information and are generally recognized by the phrases “might”, “will”, “ought to”, “potential”, “intends of”, “expects”, “strives”, “search”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “consider”, “might”, “venture”, “predict”, “proceed”, “goal” or different related phrases or expressions. Ahead-looking statements are primarily based on present plans, estimates and expectations that are topic to dangers, uncertainties and assumptions. Ahead-looking statements might embrace statements about numerous dangers and uncertainties, together with these described underneath “Danger Components” as detailed infrequently in Stronghold’s stories filed with the SEC, together with Stronghold’s Annual Report on Kind 10- Okay, periodic quarterly stories on Kind 10-Q, present stories on Kind 8-Okay, and different paperwork filed with the SEC. These dangers and uncertainties are usually not unique. All forward-looking statements communicate solely as of the date of this communication. The Firm undertakes no obligation to replace any forward-looking statements, whether or not on account of new info or developments, future occasions or in any other case, besides as required by regulation. Readers are cautioned to not place undue reliance on any of those forward-looking statements. As well as, the next descriptions of market situations and alternatives are for informational functions solely; there might be no assurance that such situations will really happen or end in constructive returns. Recipients of this communication ought to make their very own analysis and analysis of any info referenced herein.
