Stronghold Digital Mining Shares Drop 15% After Deals to Buy Bitcoin Miners
20 Dezembro 2021 - 3:48PM
Dow Jones News
By Chris Wack
Stronghold Digital Mining Inc. shares were down 15% to $10.69
Monday after the company said it entered into four separate
agreements to buy 9,080 Bitmain and MicroBT Bitcoin miners since
Nov. 30.
The company said the aggregate hash rate capacity of these
miners is 826 petahash a second, and it expects 4,800 miners to be
delivered before the end of the year or in early January, with the
remainder expected in the first half of 2022.
Stronghold said all miners will be installed at its wholly owned
reclamation and power generation facilities.
The purchase price for the first 4,800 miners was $35.7 million,
representing less than $84 per terahash a second, with the
remaining 4,280 miners acquired under a profit share arrangement
with its existing partner, Northern Data.
To date, Stronghold has executed definitive purchase agreements
or has installed more than 54,000 miners with hash rate capacity of
about 5.2 exahash a second.
Last week, Stronghold entered into an equipment financing
agreement with NYDIG ABL LLC for up to $54 million, of which it has
already received a first advance of $18.6 million.
The principal outstanding bears interest at 9.85% and will be
repaid over the 24 months, ending Dec. 25, 2023. The debt is
non-recourse to Stronghold and is collateralized by the purchase of
12,000 Antminer S19j Pro miners from Bitmain Technologies Ltd.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
December 20, 2021 13:33 ET (18:33 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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