Bitcoin mining company Stronghold covers $67M in debt by selling mining rigs

With coins tanking in value, a US-based crypto mining company had to sell over 26.000 mining rigs to cover some of its debt.
Thousands of crypto mining rigs in a room.

While the crypto crash hit the miners hard, there are some who got hit even harder, the ones who decided to invest big bucks in digital mining and spent millions of dollars in hardware. Stronghold Digital Mining is one of them, an eye-catching one even, as the company released its financial statement for its second quarter ended June 30, stating that they had to sell 26.200 mining rigs to cover $67 million in debt.

Related: Google invested $1.5bn in blockchain companies in the last 10 months

Stronghold still holds onto 16.000 mining rigs, though, meaning they’re not completely out of the game yet. The company said they’ll be following the market in the upcoming months/years and they may reinvest in more rigs, provided things change for the better for the coin mining industry.

Greg Beard, Co-chairman and CEO of Stronghold said:

“The company can eliminate over half of its total principal amount of debt outstanding and the significant associated interest and principal payments.

“Additionally, WhiteHawk’s continued support of Stronghold allows us to extend a significant portion of our remaining debt and provides additional availability for us to patiently and opportunistically acquire Bitcoin miners at currently depressed prices.

“Combined with our May 2022 Convertible Note holders’ commitment to swap debt for equity over time, at our option, Stronghold is back on offense.”

While the CEO is positive about what awaits the company in the near future, he also announced that the digital mining company ended the quarter with $127.9 million in debt, while having approximately $33 million in cash, and about $0.4 million in unrestricted digital currencies.

Digital currencies like ETH and BTC seem to be recovering since the crash that started in May and hit the bottom in June 2022, however, cryptocurrency markets are due to wild changes regularly.

NEXT: Zebedee raises $35M for a Bitcoin-based payment system for blockchain gamesZEBEDEE games

Leave a Reply

Your email address will not be published. Required fields are marked *