Stronghold Digital Mining to Acquire 9,080 Bitcoin Rigs

Stronghold Digital Mining is buying 9,080 Bitmain and MicroBT mining rigs, adding about 826 petahashes per second (PH/s) to its hashrate, the company said in a filing on Monday.

Since it released its third-quarter results on Nov. 30, the Pennsylvania-based company has signed four separate deals for the rigs, according to the filing. It expects 4,800 rigs, which cost $35.7 million, to be delivered by the end of the year or in early January, it said.
Another 4,280 rigs were acquired under a profit share arrangement with Northern Data, under “highly favorable” conditions for Stronghold, it said. They will be delivered during the first half of 2022, Stronghold said.
The bitcoin miner said it also signed an equipment-financing agreement with investment firm NYDIG on Dec. 15 for up to $54 million. The deal is collateralized by the purchase of 12,000 S19j Pro Antminers from Bitmain, and Stronghold has already received a $18.6 million advance, it said.
The aggregate principal outstanding comes with a 9.85% interest rate and will be repaid over 24 months.
All of the 9,080 rigs will be installed in Stronghold’s own reclamation and power generation facilities, it said.
To date, Stronghold has either installed or committed to buy over 54,000 mining rigs, with a total hashrate of about 5.2 exahashes per second, according to the filing.
Stronghold shares opened at $27 when it went public on the Nasdaq in October. They closed at $12.59 on Friday.
NYDIG raised $1 billion earlier in December, which brought its valuation to $7 billion.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.