{"id":68607,"date":"2022-10-14T17:15:16","date_gmt":"2022-10-14T14:15:16","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=68607"},"modified":"2025-09-07T15:04:52","modified_gmt":"2025-09-07T12:04:52","slug":"stronghold-digital-mining-to-save-up-to-25-million-after-termination-of-deal-with-northern-data","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/stronghold-digital-mining-to-save-up-to-25-million-after-termination-of-deal-with-northern-data\/","title":{"rendered":"Stronghold Digital Mining to save up to $25 million after termination of deal with Northern Data"},"content":{"rendered":"

The American mining company Stronghold Digital Mining will save between $10 million and $25 million by September 2024 as a result of terminating the deal with infrastructure provider Northern Data. This is reported by Coindesk<\/a>.<\/p>\n

The exact amount will depend on the price of Bitcoin.<\/p>\n

The termination of the deal gave Stronghold \u201cimproved operational control to generate cash flows over the next two years and flexibility,\u201d according to co-chairman and CEO Greg Beard.<\/p>\n

\n

\u201cWe are continuing to make significant progress in strengthening the balance sheet, liquidity and cost structure to deliver shareholder value,\u201d<\/em> he added.<\/p>\n<\/blockquote>\n

Under the terms, Stronghold Digital Mining would have paid the partner about 35% of revenue, net of electricity costs of $0.027 per kWh.<\/p>\n

The mining company was also released from the obligation to pay $2.6 million to Northern Data.<\/p>\n

Stronghold will gain the right to operate Northern Data\u2019s bitcoin farms with a capacity of about 50 MW for $1,000 a year for two years, with an option to buy them later for a price ranging from $2 million to $6 million.<\/p>\n

In exchange for terminating the deal, the company pledged to pay the partner $2 million in addition to the $2.5 million already transferred. Previously, Stronghold handed over 2,675 ASIC devices to Northern Data, eliminating obligations of about $8.8 million.<\/p>\n

The company extinguished the outstanding debt on a loan for equipment purchases<\/a> from NYDIG, returning about 26,200 ASIC miners with a total hash rate of roughly 2.6 EH\/s. Another $2 million will be written off after customs clearance of the devices. As a result since May the firm has reduced its debt load by 60%, to $59.1 million.<\/p>\n

In August, Stronghold announced<\/a> steps to restructure its debt, reducing bitcoin mining capacity.<\/p>\n

In September, Compute North, a provider of infrastructure solutions for cloud-based cryptocurrency mining, filed for bankruptcy<\/a>.<\/p>\n

In September, Bitdeer created<\/a> a $250 million fund to buy assets from ‘troubled’ companies in the industry.<\/p>\n

Subsequently, Binance and<\/a> Grayscale also<\/a> pursued similar initiatives.<\/p>\n

According to Arcane Research, the vast majority of publicly listed industry players reported retained losses<\/a> on their balance sheets, despite a strong 2021.<\/p>\n

Read ForkLog’s Bitcoin news in our article<\/a> ForkLog.<\/p>\n

Read ForkLog’s Bitcoin news in our Telegram<\/a> \u2014 cryptocurrency news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"

The American mining company Stronghold Digital Mining will save between $10 million and $25 million by September 2024 as a result of terminating the deal with infrastructure provider Northern Data. This is reported by Coindesk.<\/p>\n","protected":false},"author":1,"featured_media":68608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1137,1659],"class_list":["post-68607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-mining","tag-stronghold-digital-mining"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=68607"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68607\/revisions"}],"predecessor-version":[{"id":68609,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68607\/revisions\/68609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/68608"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=68607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=68607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=68607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}