Stronghold Digital Mining Announces Extinguishment of Debt and Closing of Previously Announced WhiteHawk Restructuring
01 Novembro 2022 - 5:30PM
Stronghold Digital Mining, Inc. (NASDAQ:
SDIG) (“Stronghold”, or the “Company”) today announced (i)
the extinguishment of the final approximately $2.1 million of the
total of approximately $67 million of principal amount of debt
outstanding with NYDIG ABL LLC (“NYDIG”) and The Provident Bank
(“BankProv”) and (ii) the closing of its previously announced
WhiteHawk restructuring and credit facility that resulted in $23
million of additional borrowing capacity. The Company believes
these moves are important steps in Stronghold’s plan to improve
profitability and liquidity and to reduce leverage despite low
Bitcoin prices.
On October 26, 2022, Stronghold closed on the
seventh and final tranche of Bitcoin miners that served as
collateral under previous financing agreements with NYDIG in
exchange for the extinguishment of approximately $2.1 million of
principal. Stronghold has now eliminated all outstanding principal,
approximately $67.4 million, under the legacy equipment financing
agreements and consensually delivered approximately 26,200 Bitcoin
miners (approximately 19,000 of which were plugged in and operating
prior to delivery) to NYDIG and BankProv, freeing up the related
fully developed data center infrastructure for future machines at
the Company’s Panther Creek Plant and Scrubgrass Plant, including
approximately 14,200 slots available at the Scrubgrass Power Plant
following the previously disclosed termination and settlement of
the hosting agreement with Northern Data PA LLC (“NDPA”) and
1277963 B.C. Ltd. (“Bitfield”, and together with NDPA, “Northern
Data”).
On October 27, 2022, Stronghold closed its
Credit Agreement with WhiteHawk Finance LLC (“WhiteHawk”) (the
“WhiteHawk Credit Agreement”), reflecting the previously announced
binding commitment letter to restructure and expand its current
equipment financing agreements into a secured, 36-month note. The
restructuring nearly tripled the weighted-average tenor from 13 to
36 months, reduced monthly principal payments, and added
approximately $21 million of cash to the Company’s balance
sheet.
As of November 1, 2022, the current liquidity of
Stronghold is approximately $30 million, comprised of cash plus
Bitcoin. Such liquidity gives effect to the additional borrowings
under the WhiteHawk Credit Agreement that were drawn on the closing
date, $3.5 million of payments (out of $4.5 million total) already
made related to the termination and settlement of the Northern Data
hosting agreement, and approximately $3.7 million in new miner
acquisitions. With the entry into the WhiteHawk Credit Agreement,
Stronghold’s net debt is approximately $52 million (calculated as
principal amount of debt outstanding less cash and digital
currencies), a decrease of approximately 54% from the approximately
$113 million reported as of June 30, 2022. The WhiteHawk Credit
Agreement contains covenants related to the maintenance of certain
liquidity thresholds and leverage ratios.
“We are executing on the strategy we outlined
during our second quarter earnings announcement in August – to
rapidly de-lever our balance sheet and enhance liquidity, and we
are actively pursuing acquisitions of Bitcoin miners at attractive
prices to take advantage of the current distressed market while
continuing to carefully manage liquidity,” said Greg Beard,
co-chairman and chief executive officer of Stronghold. “We look
forward to rebuilding our miner fleet opportunistically and will
continue to seek out ways to accretively leverage our vertical
integration and improve financial flexibility in what remains a
dynamic, challenging market.”
About Stronghold Digital Mining,
Inc.
Stronghold is a vertically integrated Bitcoin
mining company with an emphasis on environmentally beneficial
operations. Stronghold houses its miners at its wholly owned and
operated Scrubgrass Plant and Panther Creek Plant, both of which
are low-cost, environmentally beneficial coal refuse power
generation facilities in Pennsylvania.
Investor Contact:
Matt Glover or Jeff Grampp, CFAGateway Group,
Inc. SDIG@GatewayIR.com1-949-574-3860
Media Contact:
contact@strongholddigitalmining.com
Forward Looking Statements:
The information, financial projections and other
estimates contained herein contain “forward-looking” statements as
that term is defined in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended by the Private Securities Litigation Reform Act of 1995,
including, but not limited to the anticipated performance of the
Company as a result of the recent restructuring of the Company’s
debt. Such financial projections and estimates are as to future
events and are not to be viewed as facts, and reflect various
assumptions of management of the Company concerning the future
performance of the Company and are subject to significant business,
financial, economic, operating, competitive and other risks and
uncertainties and contingencies (many of which are difficult to
predict and beyond the control of the Company) that could cause
actual results to differ materially from the statements and
information included herein. Forward-looking statements concern
future circumstances and results and other statements that are not
historical facts and are sometimes identified by the words “may,”
“will,” “should,” “potential,” “intend,” “expect,” “endeavor,”
“seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,”
“believe,” “could,” “project,” “predict,” “continue,” “target” or
other similar words or expressions. Forward-looking statements are
based upon current plans, estimates and expectations that are
subject to risks, uncertainties and assumptions. Forward-looking
statements may include statements about various risks and
uncertainties, including those described under the heading "Risk
Factors" as detailed from time to time in Stronghold’s reports
filed with the SEC, including Stronghold’s annual report on Form
10-K, periodic quarterly reports on Form 10-Q, current reports on
Form 8-K and other documents filed with the SEC. Such risk and
uncertainties are not exclusive. Any forward-looking statements
speak only as of the date of this communication. The Company does
not undertake any obligation to update any forward-looking
statements, whether as a result of new information or development,
future events or otherwise, except as required by law. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements. Additionally, descriptions herein of
market conditions and opportunities are presented for informational
purposes only; there can be no assurance that such conditions will
actually occur or result in positive returns. Recipients of this
communication should make their own investigations and evaluations
of any information referenced herein.
Stronghold Digital Mining (NASDAQ:SDIG)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Stronghold Digital Mining (NASDAQ:SDIG)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024