Home News Stronghold Digital Mining acquired 9080 Bitcoin miners

Stronghold Digital Mining acquired 9080 Bitcoin miners


The American mining company Stronghold Digital Mining has concluded four separate agreements for the acquisition of 9080 ASIC miners for Bitcoin (BTC) mining produced by Bitmain and MicroBT.

It is expected that the first batch of 4,800 devices with a total hashrate of about 426 petahash per second (PH/s) will be delivered by the end of 2021 or early January 2022. The purchase price was about $35.7 million, about $84 for 1 terahash per second (TH/s).

Thus, the company received the remaining 4280 miners. As part of a profit-sharing agreement with its current partner, the Northern Data infrastructure provider. Stronghold called the commercial terms of the deal “highly favorable.”

Financing the purchase of equipment

According to the press release, the company collectively has purchased agreements or has installed more than 54,000 Bitcoin mining devices. With a combined hashrate of approximately 5.2 exahash per second (EH/s).

“During our third quarter earnings call, we told our investors that we would continue to opportunistically procure miners from a variety of sources, as dictated by expected return profile and available capacity, and that is what we did over the last two weeks,” said Stronghold co-chairman and CEO Greg Beard.

Previously on December 15, the company signed an agreement with NYDIG to finance the purchase of equipment in the amount of about $54 million. Therefore, the firm received the first advance of $18.6 million. The principal amount of the outstanding debt is 9.85%. Moreover, the maturity date is 24 months and ends on December 25, 2023.

Ability to quickly raise non-dilutive capital at an attractive cost

Stronghold noted that the deposit for the purchase of 12,000 miners from Bitmain caused the debt. “We believe this financing demonstrates our ability to quickly raise non-dilutive capital at an attractive cost. Equipment financing is our preferred non-equity source of capital given the flexible terms and non-recourse structure to Stronghold,” Beard added.

Earlier on October 20, the company held an IPO on Nasdaq, placing 6,687,305 Class A shares at a price of $19 for a total of $127 million.

Recall that in December, NYDIG closed a record $1 billion round of financing for the industry. Investors valued the company at more than $7 billion.

Previous articleOn Kickstarter, a Bitcoin book for American officials has seen a fivefold increase in funding
Next articleFigment raised $110M at a valuation of $1.4B