The adjustments are designed to higher situate the corporate for his or her future endeavors.
Stronghold Digital Mining, with WhiteHawk Finance LLC, has introduced ratifications to their authentic credit score settlement in line with a press launch despatched to Bitcoin Magazine. In addition to this announcement, Stronghold has entered a brand new two 12 months contract with Foundry Digital, changing their earlier short-term contract.
The adjustments to the credit score settlement are “designed to provide Stronghold with significantly enhanced liquidity and financial flexibility,” in line with the announcement. The following phrases are outlined:
- No necessary principal amortization funds till July 2024.
- Principal compensation by money sweep.
- Option to pay curiosity in sort for as much as six months.
- Elimination of all leverage covenants earlier than Q3 2024.
- Reduced minimal liquidity covenants.
- And no dilution, with the phrases saying that “no equity will be issued in relation to the Amendment to the Credit Agreement.”
Greg Beard, co-chairman and chief government officer of Stronghold defined, “We are appreciative of WhiteHawk’s continued partnership as we manage through the volatility in Bitcoin and power markets. Our efforts to anticipate and respond proactively to challenges in our markets while prioritizing liquidity have helped us endure through this environment.”
In regards to the brand new Foundry settlement, the discharge explains that it “applies to the same Bitcoin mining fleet of approximately 4,500 miners with total hash rate capacity of approximately 420 PH/s and average efficiency of approximately 35 J/TH.” It has related phrases to the earlier, with the next variations:
- “The agreement term is two years, with no unilateral early termination option.
- The applicable hosting fee will be the realized net cost of power at the Company’s Panther Creek Plant plus 10%, calculated on a monthly basis.
- Foundry will participate in profit generated from selling power to the grid when miners are curtailed.”
In regards to the amended settlement, Beard stated that the corporate is “excited to continue to partner with Foundry with this new long-term agreement, whereby Foundry will fully participate in our vertically integrated business model, validating our differentiated strategy. Further, the multi-year nature of the agreement offers certainty around keeping miners installed and is a natural pathway to fill a portion of our open miner slots capable of supporting approximately 4 EH/s of miners utilizing our self-generated power.”