Stronghold Digital Mining reports ‘significant’ debt restructuring

Chicago, Aug. 16 – Stronghold Digital Mining, Inc. reported “significant debt restructuring events” in a press release on Tuesday.

The company first announced a debt extinguishment in that it eliminated all $67.4 million under an equipment financing agreement with NYDIG ABL LLC and another participating lender. The company returned approximately 26,200 Bitcoin miners, of which 18,700 are currently operating.

On Tuesday, the company also received a binding commitment letter from Whitehawk Finance LLC to restructure and expand its current equipment financing agreements into a secured, 36-month note. The transaction more than doubles the weighted-average tenor to 36 months from 14 months and reduces near-term principal payments. It also adds up to $20 million of additional borrowing capacity in a flexible, drawdown facility available upon closing of the new facility.

Proceeds from the new financing will be used to purchase additional miners opportunistically.

The company also amended its convertible notes and warrants so that the company may, at its option, fully extinguish the notes with equity over the next few quarters.

Stronghold is a New York-based vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations.

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