Bitcoin miner Stronghold Digital (SDIG) is to host 4,000 mining machines supplied by Cantaloupe Digital, a subsidiary of rig maker Canaan (CAN).
The 2,000 A1246 and 2,000 A1346 miners will provide a total capacity of 400 petahash per second (PH/S), according to an emailed announcement on Thursday. The A1246 miners will be installed by May 15, while the A1346 miners will be installed by a month later.
Stronghold has procured around 22,000 miners since August with capacity of 2.2 exahash per second (EH/s) at a cost of $15 million, CEO Greg Beard said.
"We achieved this through opportunistic purchases of Bitcoin miners in a distressed market and through unique hosting agreements where we retain exposure to Bitcoin mining economics and power upside," Beard said.
As part of the two-year hosting agreement with Canaan, Stronghold will receive 50% of the bitcoin mined and retain any upside of selling power back to the grid, should the company elect to curtail the usage of the machines to do so.
Like its peers across the mining industry, Stronghold spent 2022 in a squeeze between falling bitcoin prices and exorbitant energy costs.
Stronghold was able to organize restructuring deals to fend off the bankruptcies that befell Compute North and Core Scientific (CORZ). Its latest restructuring deal allowed it to postpone payments on $55 million worth of debt until June 2024.
SDIG shares are up around 3.8% on the day at $0.89 at the time of writing.
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.