Stronghold will save up to $ 25 million after termination of the agreement with Northern Data
The American mining company Stronghold Digital Mining will save from $ 10 million to $ 25 million by September 2024 as a result of termination of the transaction with the Northern Data infrastructure provider. About this writes Coindesk.
The specific amount will depend on the price of bitcoin.
The termination of the transaction was provided by Stronghold “Improved operational control for generating cash flows over the next two years and flexibility”, according to the co -chair and CEO to Greg Birdu.
“We continue to achieve significant progress in strengthening the balance, liquidity and structure of costs to ensure joint -stock value”, He added.
According to the agreements, the Stronghold Digital Mining was supposed to pay a partner about 35% of the revenue minus electricity costs of $ 0.027 per kW/h.
The mining company also exempted from the obligation to pay $ 2.6 million in favor of Northern Data.
Stronghold will receive the right to operate Northern Data bitcoin Ferm with a capacity of ~ 50 MW per $ 1000 per year for two years with an option of their further redemption at a price of $ 2 million to $ 6 El Salvador’s President million.
In exchange for termination of the transaction, the company promised to pay the partner $ 2 million in addition to the previously already transferred $ 2.5 million. Prior to this, Stronghold transferred Northern Data 2675 ASIC devices, which eliminated obligations in the amount of ~ $ 8.8 million.
The company liquidated the outstanding loan debt for the purchase of equipment from Nydig, returning about 26,200 ASIC-mainers with a total hash of about 2.6 eh/s. Another $ 2 million company will write off after exemption from customs clearance of devices. As a result, since May, the company managed to reduce the debt load by 60%, to $ 59.1 million.
Recall that in August Stronghold reported the steps taken to restructure debts with a reduction in the capacity of Bitcoin mining.
In September, the supplier of infrastructure solutions for the production of cryptocurrencies in the cloud services of Compute North filed a bankruptcy statement.
In September, the Bitdeer mining service provider has created a fund of $ 250 million for the purchase of assets from “problematic” industry companies.
Subsequently, Binance and GrayScale performed with similar initiatives.
According to Arcane Research, the overwhelming number of public companies in the industry reflected retained loss on the balance sheet, despite the successful 2021.
About how the collapse of Bitcoin prices affected large miners and what will happen in the industry further, read in the FORKLOG material.
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