Bitcoin miner Stronghold pushes back debt payments on $54.9 million loan

Quick Take

  • Stronghold reached a new agreement with lender WhiteHawk Finance in order to push back payments and improve the company’s liquidity.
  • It also signed a two-year hosting deal with Foundry.

Bitcoin miner Stronghold restructured its $54.9 million loan with WhiteHawk Finance and signed a two-year hosting deal with Foundry.

The miner was able to push back any mandatory principal amortization payments (totaling $29 million) until July 2024, it said in a statement.

Starting in June of this year, Stronghold is to repay the principal amount of debt outstanding using 50% of its average monthly cash balance in excess of $7.5 million.

“With a lot of hard but necessary work, we have successfully restructured nearly our entire balance sheet to make the Company more resilient, and I am very excited about the next phase for Stronghold,” said Greg Beard, co-chairman and CEO of Stronghold.

Also in an effort to improve liquidity, the company announced in January a deal to convert $17.9 million of debt into equity. Between the two moves, it "will have removed all material mandatory principal repayments through the middle of 2024," Beard said.

Stronghold said its new hosting agreement with Foundry replaces a previous hosting agreement from Nov. 7 and similarly includes a fleet of 4,500 miners. It will also allow Foundry to benefit from selling power to the grid when miners are curtailed.

"We are 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," Beard said.

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