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.
- 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.
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