Stronghold Digital Mining to Acquire 9,080 Bitcoin Rigs
The bitcoin miner also signed a $54 million financing deal with NYDIG.
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.
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