- Bitcoin miner Stronghold has signed separate offers to buy 9,080 rigs.
- The corporate additionally entered into an equipment-financing settlement with NYDIG for as much as $54 million.
- “We anticipate to proceed using modest quantities of apparatus financing,” Stronghold’s CEO mentioned in a press release.
Stronghold Digital Mining has entered into agreements to buy 9,080 Bitmain and MicroBT bitcoin mining rigs, the corporate mentioned in a Monday submitting.
Stronghold mentioned it accomplished the offers because it launched its third-quarter outcomes on November 30. The corporate expects the brand new machines to output a complete of 826 petahashes per second (PH/s) after full deployment. The primary batch, 4,800 rigs that price $37.5 million, ought to arrive by the tip of the 12 months or in early January.
The remaining 4,280 miners have been secured by way of a revenue share association with Stronghold’s current accomplice, Northern Knowledge, beneath “extremely favorable” phrases, it mentioned. So far, the corporate has both deployed or dedicated to buy greater than 54,000 rigs, with a complete hashrate capability of about 5.2 exahashes per second (EH/s), in line with the submitting.
“We imagine these miner purchases additional our speedy development technique, and the near-term supply schedules for the open-market purchases improve anticipated return profiles and mitigate timing danger,” Greg Beard, co-chairman and CEO of Stronghold, mentioned, per the submitting.
Stronghold mentioned it additionally signed a separate equipment-financing settlement of $54 million with institutional bitcoin dealer NYDIG on December 15, from which it has already obtained an $18.6 million advance. The debt is collateralized by buying 12,000 Antminer S19j Professional miners from Bitmain, and the mixture principal excellent bears curiosity at 9.85%, to be repaid over the following 24 months.
“We anticipate to proceed using modest quantities of apparatus financing with each current and new companions, together with money on the steadiness sheet and opportunistic monetization of our Bitcoin holdings, to proceed funding our development plans,” Beard added.