Structuring Continues with Share Issuance
Stronghold Digital Mining (SDIG) has agreed with shareholders to exchange $17.9 million of convertible debt for $23.1 million of convertible stock, according to a statement released Tuesday morning.
Among the many bitcoin miners who want to reorganize and reduce costs amid the ongoing slowdown in the crypto market, Stronghold announced an agreement in August to restore 26,200 mining is lending to NYDIG in exchange for paying off $67.4 million in debt.
Later in 2022, the company canceled the hosting agreement with Northern Data in Germany (NB2X: GER).
Under the agreement announced this morning, the 10% Convertible Notes (approximately $17.9 million) will be extinguished in exchange for a new series (Series C) of convertible shares with a par value of approximately $23.1 million.
The preferred shares will convert into common shres at a conversion price of $0.40 per shhare. If all preferred shares are converted, about 57.8 million will be issued, adding about 46% to the current fleet, according to the company. The new product chosen has no distribution.
At the end of 2022, Stronghold has about $12.4 million in unlimited liquidity and about 6 bitcoins (about $100,000 at current prices).
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