Returning the bitcoin mining machines to NYDIG would eliminate more than half of Stronghold’s debt.
Publicly-traded Bitcoin mining company Stronghold Digital Mining said it plans to return more than 26,000 mining rigs to New York Digital Investment Group to reduce its debt significantly. NYDIG is a leading bitcoin firm that helps miners finance mining equipment and power infrastructure.
The mining company also intends to restructure a convertible note for cash after receiving a binding commitment letter from private credit investment manager WhiteHawk Capital to amend its financing agreements.Stronghold will return about 26,200 bitcoin mining rigs to NYDIG to eliminate all of its $67.4 million outstanding debt to the lender, the company said on Tuesday in a pressThe bitcoin miner released its Q2 earnings report this week after delaying it seven days prior.
Furthermore, Stronghold said it restructured its Convertible Notes and Warrants to reduce the principal outstanding amount by $11.3 million in exchange for lowering the strike price on outstanding warrants from $2.50 to $0.01. “By returning miners to NYDIG that served as the collateral for the non-recourse financing agreements and restructuring the WhiteHawk financing agreements and the Convertible Notes, we will be able to eliminate over half of our total principal amount of debt outstanding and the significant associated interest and principal payments,” the company said.Since the market crash in Q2, bitcoin miners have been selling mined BTC or mining machines to pay off their debt or cover operational costs.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stronghold shifts focus from bitcoin mining to selling power as it restructures debtBitcoin miner Stronghold pivots to selling power as it restructures its debt.
Read more »
Bitfarms Posts $142 Million Loss | CoinMarketCapBitfarms was the second mining company in short succession that posted poor numbers in the last quarter due to falling crypto prices 📉
Read more »
Can the Texas Power Grid Survive the Crypto Mining Boom?“I don't want my AC to be competing against Bitcoin mines,” says Texas Monthly’s Russell Gold.
Read more »
Crypto News, August 16: Celsius Has One, No, Two Holes in Its Pockets | CoinMarketCapIn today's cryptonews Celsius could run out of money by late October 🤯 GameFi sector down but not out 🎲 Bitcoin miner Greenidge expansion plans paused 📉 Galaxy dumps acquisition plans, BitGo says it will sue ❌ Bitfarms posts $142 million loss 😟
Read more »
Bit Mining Secures $9.3 Million Registered Direct Offering From Institutional Investors – Mining Bitcoin NewsBit Mining Limited plans to use the fresh capital to expand infrastructure and invest in new crypto mining machines.
Read more »
Bitcoin miner Greenidge Generation 'pauses' Texas expansion plans, reports $107.9 million in second-quarter net lossesBitcoin miner Greenidge Generation said that it is pausing plans to develop additional sites in Texas as it reports $107.9 million in second quarter net losses.
Read more »