The changes are designed to better position the company for its future endeavors.
Stronghold Digital Mining, with WhiteHawk Finance LLC, has announced the ratification of its original credit agreement according to a press release sent to Bitcoin Magazine. In addition to this announcement, Stronghold signed a new two-year contract with Foundry Digital, replacing his previous temporary contract.
The changes to the credit agreement are “designed to provide Stronghold with significantly improved liquidity and financial flexibility,” according to the announcement. The following terms are defined:
- No mandatory principal amortization payments until July 2024.
- Reimbursement of principal through cash sweep.
- Option to pay interest in kind for up to six months.
- Elimination of all leverage agreements before the third quarter of 2024.
- Reduced minimum liquidity agreements.
- And without dilution, with the terms that “no principal shall be issued in connection with the Credit Agreement Amendment.”
Greg Beard, Co-Chairman and CEO of Stronghold explained: “We appreciate WhiteHawk’s continued partnership as we manage volatility in the Bitcoin and energy markets. Our efforts to anticipate and proactively respond to challenges in our markets while prioritizing liquidity have helped us weather this environment.”
Regarding the new Foundry deal, the release explains that it “applies to the same Bitcoin mining fleet of approximately 4,500 miners with a total hash rate capacity of approximately 420 PH/s and an average efficiency of approximately 35 J/TH.” . It has terms similar to the previous one, with the following differences:
- “The term of the contract is two years, with no unilateral early termination option.
- The applicable lodging rate will be the net realized cost of energy at the Company’s Panther Creek Plant plus 10%, calculated monthly.
- Foundry will participate in the profits generated from the sale of energy to the grid when the miners are reduced.
Regarding the amended agreement, Beard said the company is “excited to continue to partner with Foundry on this new long-term agreement, whereby Foundry will fully participate in our vertically integrated business model, validating our differentiated strategy. Additionally, the multi-year nature of the agreement offers certainty in keeping miners installed and is a natural path to fill a portion of our open mining spaces capable of supporting approximately 4 EH/s of miners using our self-generated power.”
