Bitcoin Miner Stronghold Restructures Debt on $54.9 Million Loan To Strengthen Liquidity

Key Points: Stronghold has reached a new agreement with WhiteHawk Finance, which will delay payments and increase the company’s liquidity.
The miner pushes for mandatory payments to be made until July 2024.
Bloomberg reports that Stronghold has restructured a $54.9million loan with WhiteHawk Finance, and negotiated a two year hosting agreement with Foundry. Stronghold plans to repay the principal amount of its outstanding loans with 50% of its average monthly cash balance of more than $7.5 million, beginning in June.
We have successfully restructured almost all of our balance sheets to make the Company more resilient. It took a lot of hard work but it was worth it. I am excited about the next phase at Stronghold. We have been able to withstand this environment thanks to our ability to anticipate and respond to market challenges while prioritizing liquidity. We will be able to eliminate all mandatory principal repayments by the middle of 2024 with this amendment and our previously announced convertible loan exchange agreement, which is still on track to close this month. This puts Stronghold in a position to capture significant value from key markets, power, and Bitcoin.
Greg Beard, CEO and co-chairman of Stronghold, stated that the company may pay interest to any monthly cash balance below $5 million. This means that interest will be added to the principal. WhiteHawk also has a host of liquidity restrictions for the miner, including staying below a particular debt-to-earnings ratio at the end of each quarter commencing September 30, 2024.According to the statement, the minimum permissible liquidity, defined as unrestricted cash plus Bitcoin, at any given moment is $2.5 million until March 31, 2024, $5.0 million from April 1, 2024, through December 31, 2024, and $7.5 million thereafter.Stronghold stated that its new hosting agreement with Foundry supersedes an earlier hosting agreement dated November 7 and comprises a fleet of 4,500 miners. Foundry will also be able to make a profit by selling power to the grid if miners stop working. We encourage you to do your own research before investing.Join us to keep track of news: NewsTags: Bitcoin minerBitcoin minersBitcoin miningStrongholdStronghold DigitalStronghold Digital Mining