A Bitcoin miner firm returns 26,200 mining rigs to NYDIG in order to clear a €65 million debt

Stronghold Digital Mining Inc. shares fell more than 25% in U.S. trading on Wednesday after the company said second-quarter losses increased from a year earlier, despite a restructuring plan that included the return of approximately 26,200 Bitcoin mining machines to cut debt in half. 

Fast facts

  • In the second quarter of this year, Stronghold Mining’s net loss grew from  €3.1 million to  €39.5 million, according to its latest earnings report.
  • Stronghold announced on Tuesday that it has reached agreements with New York Digital Investment Group and another lender to return Bitcoin mining rigs in order to reduce €66.2 million in debt, a move that the company expects will “significantly improve Stronghold’s financial condition and position it for increased financial flexibility going forward.”
  • WhiteHawk Finance LLC also provided the company with a commitment letter to restructure and expand its current equipment financing agreements to add up to €19.6 million in borrowing capacity. 
  • Stronghold intends to reduce its outstanding dues by €77.6 million, or about 55% of total principal outstanding as of June 30, with these agreements and another convertible note restructuring.
  • “ Despite lower margins on crypto and higher electricity costs, the company has consistently traded between selling power to the grid and mining bitcoin.

         Use this link to sign up and start trading with 0% trading fees at Bitdenex Exchange