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© Reuters. Stronghold Digital Mining (SDIG) Broadcasts Bitcoin Mining Replace and Frontier Managed Providers Settlement
Stronghold Digital Mining, Inc. (SDIG) (“Stronghold”, or the “Firm”) as we speak supplied the next updates relating to its operations and monetary efficiency:
Bitcoin Mining Replace
Stronghold mined 196 Bitcoin in September 2023 and generated roughly $0.2 million in vitality income, which represents the equal of roughly 7 further Bitcoin primarily based on the common value of Bitcoin throughout the month of September. This equates to roughly 203 of Bitcoin-equivalent manufacturing in September 2023 in comparison with roughly 235 in August 2023. The Firm skilled an unplanned outage throughout September 2023 at its Scrubgrass energy plant (the “Scrubgrass Plant”) that affected each its plant operations and information middle operations. The Firm elected to increase the outage on the Scrubgrass Plant attributable to low energy costs in an effort to conduct further upkeep. The information middle positioned on the Scrubgrass Plant returned to full operations after seven days, importing energy from the PJM Interconnection LLC (“PJM”) grid. As soon as the information middle on the Scrubgrass Plant resumed operations, hash charge completed the month at roughly 3.5 exahash per second (“EH/s”), the Firm’s all-time-high hash charge, up roughly 15% versus the August 2023 exit hash charge. Because the outage on the Scrubgrass Plant continues, PJM not too long ago requested that the Firm scale back its imports to 10 to twenty megawatts for an estimated 10-day interval beginning on October 11, 2023, so as to carry out transmission line work within the space. Stronghold intends to cooperate with the PJM import directive. Stronghold plans to begin the Scrubgrass Plant imminently so as to resume full information middle output whereas minimizing the affect of the PJM directive. Stronghold expects October 2023 Bitcoin manufacturing to be within the vary of 205 to 215 Bitcoin, excluding any electrical energy gross sales, and the Firm continues to count on over 20% common hash charge development within the fourth quarter of 2023 when in comparison with the third quarter of 2023.
Frontier Managed Providers Settlement
Stronghold has been centered on the optimization of its information facilities following the receipt of the Bitcoin miners to succeed in its beforehand introduced 4 EH/s goal. This has included working with Frontier Mining, an industry-leading Bitcoin mining information middle administration firm, in a brief consulting capability relating to an intensive evaluation of the chance to maximise information middle income alternatives. On October 13, 2023, Stronghold Digital Mining LLC (“Stronghold LLC”), a completely owned subsidiary of the Firm, and Frontier Outpost 8, LLC (“Frontier”) entered right into a Managed Providers Settlement (the “MSA”) pursuant to which Frontier is to supply sure providers, together with monitoring, working, and sustaining the Firm’s wholly owned information facilities positioned at every of the Panther Creek energy plant (the “Panther Creek Plant”) and the Scrubgrass Plant.
“We’re excited to accomplice with Frontier to boost all features of our information facilities and optimize Bitcoin manufacturing,” mentioned Greg Beard, the chairman and chief government officer of Stronghold. “We’ve identified the Frontier group for years and admire their mining experience, administration group, and hands-on strategy to operations, and we count on to maneuver nearer towards industry-leading uptime within the close to time period. A part of Frontier’s compensation below the MSA is fairness in Stronghold, which we consider aligns Stronghold and Frontier for the foreseeable future whereas additionally signaling Frontier’s confidence in our vertically built-in enterprise mannequin, as we head into the Bitcoin halving that’s projected to happen in April 2024.”
About Stronghold Digital Mining, Inc.
Stronghold is a vertically built-in Bitcoin mining firm with an emphasis on environmentally helpful operations. Stronghold homes its miners at its wholly owned and operated Scrubgrass Plant and Panther Creek Plant, each of that are low-cost, environmentally helpful coal refuse energy technology services in Pennsylvania.
Investor Contact:
Matt Glover or Alex Kovtun
Gateway Group, Inc.
[email protected]
1-949-574-3860
Media Contact
[email protected]
Cautionary Assertion Regarding Ahead-Trying Statements:
Sure statements contained on this press launch, together with steering, represent “forward-looking statements” inside the which means of the Personal Securities Litigation Reform Act of 1995. You possibly can establish forward-looking statements as a result of they comprise phrases equivalent to “believes,” “expects,” “could,” “will,” “ought to,” “seeks,” “roughly,” “intends,” “plans,” “estimates” or “anticipates” or the damaging of those phrases and phrases or comparable phrases or phrases that are predictions of or point out future occasions or developments and which don’t relate solely to historic issues. Ahead-looking statements and the enterprise prospects of Stronghold are topic to various dangers and uncertainties which will trigger Stronghold’s precise ends in future durations to vary materially from the forward-looking statements. These dangers and uncertainties embrace, amongst different issues: the current restructuring of the Firm’s debt and the efficiency and satisfaction of varied obligations below the agreements entered into so as to impact such restructuring of debt; the hybrid nature of our enterprise mannequin, which is extremely depending on the worth of Bitcoin; our dependence on the extent of demand and monetary efficiency of the crypto asset {industry}; our capability to handle development, enterprise, monetary outcomes and outcomes of operations; uncertainty relating to our evolving enterprise mannequin; our capability to retain administration and key personnel and the combination of recent administration; our capability to lift capital to fund enterprise development; our capability to take care of ample liquidity to fund operations, development and acquisitions; our substantial indebtedness and its impact on our outcomes of operations and our monetary situation; uncertainty relating to the outcomes of any investigations or proceedings; our capability to enter into buy agreements, acquisitions and financing transactions; public well being crises, epidemics, and pandemics such because the coronavirus pandemic; our capability to obtain and set up crypto asset mining tools, together with from foreign-based suppliers; our capability to take care of {our relationships} with our third occasion brokers and our dependence on their efficiency; developments and adjustments in legal guidelines and rules, together with elevated regulation of the crypto asset {industry} by legislative motion and revised guidelines and requirements utilized by The Monetary Crimes Enforcement Community below the authority of the U.S. Financial institution Secrecy Act and the Funding Firm Act; the long run acceptance and/or widespread use of, and demand for, Bitcoin and different crypto property; our capability to answer value fluctuations and quickly altering know-how; our capability to function our coal refuse energy technology services as deliberate; our capability to stay listed on a inventory trade and keep an energetic buying and selling market; our capability to avail ourselves of tax credit for the clean-up of coal refuse piles; and legislative or regulatory adjustments, and legal responsibility below, or any future incapability to adjust to, present or future vitality rules or necessities. Extra info on these dangers and different potential components that would have an effect on our monetary outcomes is included in our filings with the Securities and Alternate Fee, together with within the “Danger Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” sections of our Annual Report on Kind 10-Ok filed on April 3, 2023 and in our subsequently filed Quarterly Studies on Kind 10-Q. Any forward-looking assertion or steering speaks solely as of the date as of which such assertion is made, and, besides as required by legislation, we undertake no obligation to replace or revise publicly any forward-looking statements or steering, whether or not due to new info, future occasions, or in any other case.
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