Bitcoin Miner Stronghold Announces Agreement Changes with WhiteHawk Finance, Foundry
By BtcCasey Bitcoin mining firm Stronghold Digital has reached a new agreement with WhiteHawk Finance, and a new hosting agreement with Foundry Digital.
The changes to the credit agreement are “designed to provide Stronghold with significantly enhanced liquidity and financial flexibility,” according to the announcement. The following terms are defined: No mandatory principal amortization payments until July 2024. Principal repayment through cash sweep. Option to pay interest in kind for up to six months. Elimination of all leverage covenants before Q3 2024. Reduced minimum liquidity covenants. And no dilution, with the terms saying that “no equity will be issued in relation to the Amendment to the Credit Agreement.” In regards to the new Foundry agreement, the release explains that it “applies to the same Bitcoin mining fleet of approximately 4,500 miners with total hash rate capacity of approximately 420 PH/s and average efficiency of approximately 35 J/TH.” It has similar terms to the previous, with the following differences: “The agreement term is two years, with no unilateral early termination option. The applicable hosting fee will be the realized net cost of power at the Company’s Panther Creek Plant plus 10%, calculated on a monthly basis. Foundry will participate in profit generated from selling power to the grid when miners are curtailed.” | 