American mining company Stronghold Digital Mining restructured payments on the remaining loan balance of approximately $54.9 million from Whitehawk Finance and entered into a hosting agreement with Foundry.<\/p>\n
\n“The amended credit agreement is designed to provide Stronghold with significantly greater liquidity and financial flexibility,” the press release<\/a> said.<\/p>\n<\/blockquote>\n
Under the new agreement, the required principal payments will begin in June 2024. Under the original terms, the amount of payments due before that date totaled $29 million.<\/p>\n
From June 2023, Stronghold will amortize the principal by using 50% of the average monthly cash balance in excess of $7.5 million.<\/p>\n
Whitehawk agreed to relief in interest payments as well as to the debt-to-earnings and liquidity covenants for Stronghold.<\/p>\n
As a result of the new agreements, the creditor will gain a seat on the miner’s board of directors and the right to appoint one observer.<\/p>\n
Stronghold also signed a new two-year hosting agreement with Foundry, DCG<\/span>, led by Barry Silbert. The facility will continue to host the company’s fleet of approximately 4,500 ASIC miners with a hashrate of 420 PH\/s.<\/p>\n
The changes affected hosting fees and Foundry’s participation in the profits from the return of electricity to the grid during outages of cryptocurrency mining equipment.<\/p>\n
The data centre is powered by the Panther Creek power plant owned by Stronghold.<\/p>\n