Struggling miner returns 26,000 rigs to eliminate debt
The mining operator has reached an agreement with NYDIG to sell rigs to relieve $64.7 million in debt.
New
U.S.-based mining company Stronghold Digital Mining (SDIG) on Tuesday announced new measures to increase debt stock and restructure its financial operations.
As part of an agreement with lender New York Digital Investment Group (NYDIG), the company plans to release 26,000 of its mining rigs, of which 18,700 are currently running. The sale will create more cash and clear $67.4 million of debt held by Stronghold. Prior to the deal, the company had $47 million in cash as of August 12.
Once Stronghold returns 26,000 rigs, with a total hash rate of 2.5 EH/s, their operational fleet will be around 16,000 miners. Overall, the hash rate capacity will be over 1.4 EH/s and a total power consumption of 50-55 megawatts.
The crypto market crash has played a significant role in the current difficulties for miners. In July, Bitcoin (BTC) mining revenue fell to its lowest level in a year, at nearly $15 million. It was during this time that other mining operations, such as Compass Mining, were also forced to sell rigs while facing bankruptcy.
Over the past three months, Bitcoin miners have accumulated 27% less due to the need for large sales.
Ind...
The mining operator has reached an agreement with NYDIG to sell rigs to relieve $64.7 million in debt.
New
U.S.-based mining company Stronghold Digital Mining (SDIG) on Tuesday announced new measures to increase debt stock and restructure its financial operations.
As part of an agreement with lender New York Digital Investment Group (NYDIG), the company plans to release 26,000 of its mining rigs, of which 18,700 are currently running. The sale will create more cash and clear $67.4 million of debt held by Stronghold. Prior to the deal, the company had $47 million in cash as of August 12.
Once Stronghold returns 26,000 rigs, with a total hash rate of 2.5 EH/s, their operational fleet will be around 16,000 miners. Overall, the hash rate capacity will be over 1.4 EH/s and a total power consumption of 50-55 megawatts.
The crypto market crash has played a significant role in the current difficulties for miners. In July, Bitcoin (BTC) mining revenue fell to its lowest level in a year, at nearly $15 million. It was during this time that other mining operations, such as Compass Mining, were also forced to sell rigs while facing bankruptcy.
Over the past three months, Bitcoin miners have accumulated 27% less due to the need for large sales.
Ind...
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